We pray for the rain gods to bless us this time: Sudhir Mungantiwar

Interview with Minister of Finance, Maharashtra

Sudhir Mungantiwar, finance minister of Maharashtra, talks to Sanjay Jog, ahead of the Budget presentation on Friday:

How is the government tackling the current financial crisis?

It is true we face a big challenge of high revenue expenditure and a revenue deficit. The Congress-NCP government during its 15-year rule should have devoted adhered to fiscal prudence. We have inherited their legacy and the problems. There was no focus, for instance, on farmer problems and this has resulted in rising numbers of farmer suicides. We are implementing a comprehensive plan for betterment of agriculture.

Against your (earlier) estimate of Rs 3,757 crore  of revenue deficit by the end of 2015-16, it has surged significantly.

The rise is due to various factors, including implementation of relief and rehabilitation packages for the drought and natural calamity-hit farmers. They have first right on the state treasury. We have already provided Rs 5,000 crore in relief measures and Rs 900 crore is being approved to provide foodgrain to them. We pray for the rain gods to bless us this time and hope it will help substantially reduce the revenue deficit in 2016-17.

Are the fulfillment of your poll promises, including abolition of local body tax and partial scrapping of toll tax, responsible for the present crisis?

The government took the assuming introduction of (a national) goods & services tax from April 2016. Its delay has certainly burdened our budget.  Further, tax collection has dipped against the estimates, largely due to the economic slump.

However, we are exploring non-conventional measures for additional revenue.  We will pay adequate attention to improve the efficiency of tax collection, contain the revenue expenditure and drastically reduce  non-productive spending.

On infrastructure development, we have taken a number of steps. A committee headed by former Union finance secretary Vijay Kelkar had recommended proper use of available land and the government is working in that direction.