 "Maharashtra's revenue deficit may surge on farm damage")
The government, which has sought Central aid to the tune of Rs 5,000 crore to tackle the unprecedented crisis, admits that the developmental expenditure would be hit due to the additional outgo, especially on relief and rehabilitation.
“Yes, the government’s finances will be under tremendous pressure. The government has yet to receive formal communication from the Centre for its aid and only after that, the state Cabinet will work out the allocation of funds to face the crisis. Depending on the mobilisation of revenue, especially through various taxes, the government would take a necessary decision on whether or not to impose any cut on development projects,” a senior government official, who did not want to be identified, told Business Standard.
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The state Cabinet would decide the actual allocation most likely at its meeting slated for Wednesday.
The official said it was difficult to estimate the loss in rupee terms as various departments were conducting surveys and were in the midst of preparing their reports. However, he said preliminary investigations had revealed the loss could be Rs 4,000 crore.
The official said the expenditure on relief and rehabilitation would be in addition to the government spending of Rs 5,000 crore last year to tackle drought and scarcity.
Besides, the government allocated Rs 1,212 crore for February and March towards subsidy due to a 20 per cent power rate cut. In all, the government allocated Rs 9,000 crore for the whole year towards subsidy for rate cut.
In addition, the government allocated Rs 250 crore for the implementation of food security schemes and Rs 450 crore for the modernisation of Islamic seminaries in the state.
Former Planning Commission member and economist Bhalchandra Mungekar said that irrespective of the Code of Conduct, the state government had to make all arrangements to extend a helping hand to farmers affected by the recent crisis, to avoid a Vidarbha-like tragedy.
“The government cannot totally depend upon the Centre, whose financial resources are already under stress. The remedy lies in getting partial aid and raising resources on its own. The state can't give an excuse of pressure on its own resources. Also, the state should mobilise the resources available with business houses under the CSR. Crop insurance must be universally applicable to farmers, particularly in case of vulnerable crops. The government must waive crop loans taken by farmers, depending upon the extent of individual damage,” he said.
He, however, opined that the state government's weather department, by using the latest technology, should have been able to forecast the recent natural calamity, which would have enabled farmers to take some preventive measures and control the damage, at least, partially.