Prafulla Marpakwar, TNN Jun 14, 2011, 11.28am IST
MUMBAI: More than a decade ago, Maharashtra was among the most well-administered and financially sound states. Today, however, it is all set to lose the premier status of a progressive state' which it can save only if it initiates stringent measures to tackle the ever-increasing debt burden.
Deputy chief minister and finance minister Ajit Pawar presented an estimate which revealed that the debt burden stood at Rs 2.09 lakh crore, and it will cross the Rs 2.31 lakh crore-mark at the end of March, 2012. If that happens, Maharashtra will have the dubious distinction of leading the debt-ridden states, a position so far held by Mayawati-led Uttar Pradesh, with a total debt burden of Rs 2.21 crore. "So far, Maharashtra was among the top three states with highest debt burden. Then UP toppled it. Following it were Maharashtra and West Bengal. Now, it appears that Maharashtra is racing back to top," a senior official said.
In his budget speech, Pawar listed several measures planned to improve resource mobilisation, but did not spell out the strategy to tackle whopping debt burden. "At the end of the next financial year, our debt burden will be Rs 2.31 lakh crore, while we will be paying Rs 18,000 crore towards the interest. Such a weak financial situation will have an adverse impact on developmental programmes," he said.
Way back in 1995, the debt burden stood at Rs 16,000 crore when the Sena-BJP government assumed power. However, after the saffron alliance was dislodged in 1999, the debt burden increased to a whopping Rs 44,000 crore. Subsequently, when the Congress-led democratic front assumed power, it was expected that stringent measures will be taken to tackle the ever-increasing financial liabilities. In fact, the then finance minister Jayant Patil had presented a white paper on the state's economy in 1999. Then he had listed a series of ill-advised decisions taken by the erstwhile Sena-BJP government and measures his government will take to improve financial situation. Surprisingly, between 1999 and 2011, the Congress-NCP government did not initiate any strict measures to reduce the debt burden. "It's a fact that in the white paper issued by us, we had made several promises, but to implement the same was not possible. As a result, now Maharashtra is among the most poorly administered states," a senior NCP minister said.
Leader of opposition Eknath Khadse reiterated his demand for a white paper on the debt burden. "I was the finance minister during the Sena-BJP rule. Then we had taken financial assistance for major projects, particularly for utilisation of Krishna water, but now that was not the case since most of the projects are implemented on the build operate and transfer basis. So, there is no financial liability on the state. Under such circumstances, it is the right of the people of Maharashtra to know as to why the debt burden stood at Rs 2.31 lakh crore," Khadse said.
