Thanks to farm loan waiver, Maharashtra government’s out-of-budget expenditure rises to Rs63,540 crore
The third supplementary demands of Rs3,871 crore for the current fiscal year were tabled on Mondaymumbai Updated: Feb 27, 2018 00:18 IST
Unexpected expenditure towards the farm loan waiver and the amount raised in terms of additional loans for the same has forced the government to make provision for a whopping Rs63,540 crore through three supplementary demands in the current fiscal.
The additional loans raised have also resulted in unbudgeted interests on loans, compelling the government to make the provision for Rs3,095 crore just days before the annual budget is presented.
This has come up in the supplementary demands tabled in the legislature on the very first day of the budget session on Monday. Supplementary demands are made to the legislature for getting its approval for the expenditure that is not mentioned in the regular budget. The government has to get the legislature’s nod for each rupee spent or being spent by it.
After announcing the ‘historic’ loan waiver of Rs34,022 crore in last June, the government had to make provisions of Rs35,000 crore in legislature sessions in August and December last year by presenting supplementary demands. The third supplementary demands of Rs3,871 crore for the current fiscal year were tabled on Monday. This has taken the total of the supplementary demands to an unprecedented Rs63,540 crore in a year. Of it, Rs35,000 crore were allocated for the release of the farm loans.
To make up to the unbudgeted amount, the government had to raise the additional loans of Rs20,000 crore and also initiate the cut to the budgeted outlay for the development works of various departments. This may throw the fiscal discipline out of the control next year as the deficit is expected be more than estimated.
Rupesh Keer of Samarthan Sanghatana (that analyses the budget) said, “The Fadnavis government presented the supplementary of Rs1.44 lakh crore in its 3.5 years and this is unprecedented. The government could have spent only 42% of the budgetary provisions as on today. This means the government has failed to release the budgeted amount for the development projects.”
An official from the finance department on the condition of anonymity, “Article 115 of the Constitution of India gives the states the right to raise supplementary demands without any limit in proportion of the actual budget size. The cut to the budgetary allocation has already hit the development work this year. The increasing debt burden due to the farm loan waiver and rise in the deficit may reflect badly on the 2018-19 budget, which has to be presented on March 9.”
The government has also set aside the amount of Rs1 crore for the expenditure towards the survey of the Maratha community to accord it reservation in jobs and education. It has made an allocation of Rs14.35 crore towards the provision of the ex-gratia to the legal heirs of the famers committing suicides.
First Published: Feb 27, 2018 00:18 IST