Economic slowdown, the rupee value falling and large amounts of money being spent on drought and flood mitigation have taken a toll on Maharashtra. As a result, the state government has decided to initiate 20 per cent cuts in developmental works. Deputy chief minister Ajit Pawar informed his Cabinet colleagues about the reduction in budgetary allocations. He also cautioned the ministers not to come up with any new schemes for the rest of the year.
According to sources, in the wake of the poor revenue receipts, the state government has been finding it difficult to meet plan and non-plan expenditure in the first five months of the current fiscal. Of the four major sectors that have maximum earning, revenue receipts from the taxes on motor vehicles and excise have been very poor. Apart
from this, the state government has spent a huge amount for
money for drought and flood mitigation measures.
Consequently, the deputy chief minister raised objections over populist schemes that were passed in the state Cabinet meet. Taking potshots at Cabinet colleagues, Mr Pawar said that most of them came up with populist schemes, while the state was not in a position to bear any additional burden.
He informed the Cabinet that his department was compelled to introduce 20 per cent cuts on the funds for all the development projects in the state. The departments have to continue their work with 80 per cent of the total allocation. Three popular schemes will put an annual burden of `1,100 crore on the state exchequer, sources said.