Maharashtra is expected to grow by 8.6 per cent during 2009-10, compared to 3.4 per cent in the previous financial year, says an economic survey of the state released today.
Advance estimates for 2009-10 have pegged the gross state domestic product (GSDP) at Rs 4,80,335 crore. According to the Economic Survey tabled in the state legislature, agriculture and allied activities are likely to grow by 1.8 per cent in 2009-10 against a decline of 19.3 per cent in the previous year.
The manufacturing sector is likely to gain momentum and is expected to grow by 3.8 per cent as against 0.4 per cent in the previous year. The construction sector was likely to grow at a rate of 14.9 per cent, and would help the industry sector, still facing the impact of recession, to grow moderately at 7 per cent, the Survey noted.
| LOOKING UP | ||||
| Year | GSDP (in %) | Debt (Rs cr) | Revenue deficit (Rs cr) | Fiscal deficit (Rs cr) |
| 2003-04 | 8 | 97,674 | ||
26,562
The services sector would maintain the growth momentum and is expected to grow by 10.4 per cent. Electricity generation in the current financial year, up to December 2009, was 37,694 million KWH, up 1.6 per cent over 2008-09. Use of renewable sources of energy surged by 45.4 per cent. However, the state continues to reel under a power deficit of 4,941 Mw.
The state’s debt stock was expected to increase to a whopping Rs 1,85,801 crore (22.3 per cent of GSDP) in 2009-10 from Rs 1,61,277 crore in 2008-09, said the Survey. The surge in debt stock was due to an increase in borrowing to cope up with a rise in revenue and fiscal deficits.
More From This Section
After enjoying a revenue surplus for three consecutive years, the state might experience a revenue deficit of Rs 7,123 crore in 2009-10, the Survey said. The fiscal deficit, which was 2.3 per cent of the GSDP during 2008-09, was expected to increase to 3.2 per cent during 2009-10, it added.
During 2008-09, the government raised loans to the extent of Rs 27,321 crore, of which open market borrowings were of the order of Rs 17,762 crore.
Moreover, the loans raised from the central government were Rs 769 crore. Considering the repayment of redemption of loans of Rs 8,427 crore, the net loans raised by the government amounted to Rs 18,894 crore.
The Survey has estimated the agriculture production of the state in 2009-10 at 12.12 million tonnes (mt), an increase of 8 per cent compared to 11.2 mt in the previous year.
The rise is due to a surge in the area under kharif crops, mainly bajra, jowar and maize. There has been a 9 per cent increase in the area under kharif food grains resulting in rising food grain crop by 6 per cent. Production of oilseeds would increase by 18 per cent at 2.92 mt, whereas sugarcane production is expected to decrease by 11 per cent to 54 mt.
In the case of rabi crops, despite a reduction in the area under rabi food grain crops by 7 per cent during 2008-09, the production would increase marginally due to better crop conditions.