Maharashtra's total debt at Rs 83,154 cr in FY04

The total debt of Maharashtra increased to Rs 83,154 crore for the fiscal 2003-04, forming 25.2 per cent of gross state domestic product (GSDP), as against Rs 68,971 crore in previous financial year.

The loan from the centre was pegged at Rs 33,420 crore (40.2 per cent to total debt) in FY04, compared with Rs 36,904 crore (53.5 per cent to total debt) in the last fiscal, according to the economic survey for 2003-04 released here yesterday.

The overall debt position as percentage of GSDP is indicating the increasing trend continously.

This consequential accumulation of debt and debt service obligations have put constraints on state's ability to undertake developmental activities such as provision of economic and social infrastructure, the survey said.

The significantly high proportion of the outstanding debt of the state relates to the loans from the central government.

"The continuous rise in the stock of debt has increasedthe interest burden of the state over the years," it said.

The eleventh finance commission (efc) while examining the issue of sustainability of debt and fiscal deficit, observed that the proportion of interest payments to revenue receipts of the states, including devolution and grants, should be 18 per cent at the most.

The EFC, therefore, recommended that the states should keep this matter as their medium term objective. At present, interest payment proportion for maharashtra is higher than that suggested by the efc in respect of many states.