Maharashtra's 2019-20 fiscal deficit seen at Rs 90,000 crore

Maharashtra, one of the richest states in the country, is staring at over Rs 90,000-crore fiscal deficit by the end of current fiscal, said an official on Thursday.

Fiscal deficit is the difference between total revenue (or income) of the government in comparison to the total expenditure.

The state government estimated that fiscal deficit as on December 31, 2019, was around Rs 95,000 crore, which is expected to come down (to around Rs 90,000 crore by March) as the new administration has indicated imposing several cuts in expenditure and daily expenses, the official said.

The Shiv Sena-NCP-Congress government took charge on November 28.

The revenue deficit for the current fiscal is estimated to be around Rs 43,000 crore, he said.

Revenue deficit arises when the government's revenue expenditure exceeds the total revenue receipts.

"If the state does not act in time, it will lead to liquidity crunch and the scope for capital expenditure will narrow down further," said the official from the state finance ministry.

Asked about the Centre releasing its share of GST refunds to the state, the official said, "There had been some cases of fraudulent claims for refunds from certain businessmen and firms.

"The Centre has now taken a tough stand on its verification, but it has slowed down the refund payment system and almost all the states are at receiving end, including Maharashtra."