The state cabinet, headed by Chief Minister Eknath Shinde, gave its approval after Finance Secretary Saurabh Vijay presented the Finance Department's proposal in this regard.
The supplementary demands will be necessary as the government will urgently need money to allocate funds for populist schemes worth Rs 96,000 crore announced in the budget. These plans will be funded once the state legislature approves the supplemental demands. Various schemes to be funded included Mukhamantri Ladki Bahin Yojana (Rs 46,000 crore), free higher education for girls (Rs 2,000 crore), Mukhyamantri Yuva Karyaprashikshan Yojana (Rs 10,000 crore), free electricity to farmers for agricultural pumps up to 7.5 horsepower (Rs 14,761 crore) and some small and big plans for various sections (Rs 20,000-25,000 crore).
The government's decision to file additional demands comes as Deputy Chief Minister and Finance Minister Ajit Pawar projected a revenue shortfall of Rs 20,051 crore and a fiscal deficit of Rs 1.10 lakh crore in the Budget 2024- 25. He has also estimated that the state's public debt stock will rise to Rs 7.82 lakh crore in 2024-25 from Rs 7.11 lakh crore.
The revenue deficit is expected to be 0.47 per cent of the gross state domestic product (GSDP), while the fiscal deficit will be 2.59 per cent of the GSDP in 2024-25. Both are well below the 3 per cent GSDP limit as mandated by the Fiscal Responsibility and Budget Management (FRBM) Act.
A senior minister said: "The government is making all-out efforts to comply with the recommendations of the Finance Commission and the provisions of the FRBM Act. However, in the wake of supplementary demands of over Rs 94,000 crore for implementation of various plans, the state's fiscal deficit is expected to surpass the 3 percent GSDP limit and may rise to a record 4.87 percent, which will be a first in the state, however. government is able to address the situation as it is optimistic about its situation. Tax revenues are increasing rapidly.
However, another minister admitted that if the fiscal deficit exceeds 3 percent of GDPD, then it could severely affect the government's cash flow, which will bring many limitations in borrowing money in the market. "The government will have to focus on fiscal management in such a situation to avoid fiscal problems before the upcoming Assembly elections. This will certainly be a major challenge," he said.
The supplementary demands will be necessary as the government will urgently need money to allocate funds for populist schemes worth Rs 96,000 crore announced in the budget. These plans will be funded once the state legislature approves the supplemental demands. Various schemes to be funded included Mukhamantri Ladki Bahin Yojana (Rs 46,000 crore), free higher education for girls (Rs 2,000 crore), Mukhyamantri Yuva Karyaprashikshan Yojana (Rs 10,000 crore), free electricity to farmers for agricultural pumps up to 7.5 horsepower (Rs 14,761 crore) and some small and big plans for various sections (Rs 20,000-25,000 crore).
The government's decision to file additional demands comes as Deputy Chief Minister and Finance Minister Ajit Pawar projected a revenue shortfall of Rs 20,051 crore and a fiscal deficit of Rs 1.10 lakh crore in the Budget 2024- 25. He has also estimated that the state's public debt stock will rise to Rs 7.82 lakh crore in 2024-25 from Rs 7.11 lakh crore.
The revenue deficit is expected to be 0.47 per cent of the gross state domestic product (GSDP), while the fiscal deficit will be 2.59 per cent of the GSDP in 2024-25. Both are well below the 3 per cent GSDP limit as mandated by the Fiscal Responsibility and Budget Management (FRBM) Act.
A senior minister said: "The government is making all-out efforts to comply with the recommendations of the Finance Commission and the provisions of the FRBM Act. However, in the wake of supplementary demands of over Rs 94,000 crore for implementation of various plans, the state's fiscal deficit is expected to surpass the 3 percent GSDP limit and may rise to a record 4.87 percent, which will be a first in the state, however. government is able to address the situation as it is optimistic about its situation. Tax revenues are increasing rapidly.
However, another minister admitted that if the fiscal deficit exceeds 3 percent of GDPD, then it could severely affect the government's cash flow, which will bring many limitations in borrowing money in the market. "The government will have to focus on fiscal management in such a situation to avoid fiscal problems before the upcoming Assembly elections. This will certainly be a major challenge," he said.
