Mumbai: Owing to the nationwide lockdown and economic downturn, Maharashtra’s financial condition is quite delicate: Its revenue mobilisation for March dipped to Rs 17,000 crore, as against Rs 42,000 crore in 2018. As on date, the state has a revenue shortfall of Rs 35,000 crore and the chasm is expected to widen further.
The cabinet, which was chaired by Deputy Chief Minister Ajit Pawar on Thursday, painted a grim picture of the state finances as the government would be able to only pay the salary, wages and pension and spend only on ongoing works.
The cabinet unanimously decided to adopt strict austerity measures while capping expenditure on big infrastructure and development projects till the economy revives.
Also Read: Dy Chief Minister Ajit Pawar warns people to be ready for more curbs
To suggest a slew of measures for the revival of economy, the state cabinet has decided to set up two committees --- one comprising senior ministers and another consisting of serving and retired bureaucrats and financial experts.
‘‘There is a huge task cut out for the government to revive the economy,’’ Pawar told FPJ. He said there are limitations to floating bonds or raising debt in the present situation.
Pawar said the government has already taken a decision to pay salaries in two instalments to government employees which will save Rs3,000 crore. That money is being used on virus containment. The govt’s total annual outgo towards salary, wages and pensions is over Rs1.25 lakh-crore. Pawar said the state cabinet on Thursday approved a 30% cut in MLAs’ salary from April 1, 2020 to March 31, 2021. It will save Rs36 crore.
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