Maharashtra Economic Survey: Debt up 10 %, silent on irrigation scam

Maharashtra Chief Minister Prithviraj Chavan may continue to justify the state's debt burden saying it is well within the prescribed limits of the Union Ministry of Finance ministry, but the state's finances appeared far from healthy when the Economic Survey report of Maharashtra for the year 2013-14 was tabled in the state legislature on Wednesday. 
Maharashtra's debt has increased to Rs 2,71,845 crore according to revised estimates for 2013-14 from Rs 2,46,692 crore in 2012-13, a rise of 10.19 percent, the Economic Survey report says.


According to the survey, debt was Rs 1,42,382 crore during 2007-08 and it rose to Rs 1,60,672 crore in 2008-09, Rs 1,81,447 crore in 2009-10, Rs 2,03,097 crore in 2010-11, Rs 2,25,976 crore in 2011-12, Rs2,46,692 crore in 2012-13 and Rs 2,71,845 crore in 2013-14. 

"The debt stock of the State which was Rs 1,33,722 crore at the end of 2006-07, is increasing annually with average rate of 10.7 per cent and has reached Rs 2,71,845 crore as per revised estimates for 2013-14," the survey said. However, the Maharashtra state government took heart in the report's estimate that Gross State Domestic Product (GSDP) will grow at 8.7 per cent during 2013-14 as against the 7.1 per cent in 2012-13. 

"The Agriculture and allied activities sector is expected to grow at 4 per cent, industry sector at 8.8 percent and 'Services' sector at 9.3 percent," it added. The GSDP at constant (2004-05) prices is Rs 8,25,832 crore during 2012-13 as against Rs 7,77,791 crore in 2011-12, showing an increase of 6.2 percent as per the first revised estimates. 

Interestingly, the Survey has kept mum on irrigation data for the state, preferring not to give any information on the alleged multi-crore irrigation scam of 2012. It was alleged that the land under irrigation in the state had increased by just 0.1 percent in a decade, which had forced NCP leader and deputy chief minister Ajit Pawar to resign. 

Subsequently, the state government had announced a SIT probe, in December 2012, headed by irrigation expert Dr Madhav Chitale. While the SIT has submitted its report, it is yet to be tabled before the state legislature.