FY06 won't see any budget spending cuts, says Patil

Refutes opposition's allegations of juggling figures to show revenue surplus

Maharashtra finance minister Jayant Patil on Wednesday told the state legislature that the financial year 2005-06 will not witness cuts in budgeted spending unlike other years.

Patil said that the state's tax to gross state domestic product (GSDP) was actually increasing and stood at 8.31 per cent from the earlier 7 per cent levels.

He refuted allegations made by leader of Opposition Narayan Rane of having resorted to juggling figures while presenting a revenue surplus state budget for the fiscal 2005-06 and said that the budget was a realistic and well balanced one.

"The proportion of revenue increase to the GSDP has also reached 13.76 per cent compared with 12.73 per cent in the last fiscal," Patil said, adding, "Contrary to any juggling of figures, this is a defensive budget that is a reasonable one."

He added that the state revenue through taxes registered an increase of 20.65 per cent in the last fiscal.

"Despite this fact, I have accounted for a conservative increase of 17.60 per cent in revenues through taxation in 2005-06," he said.

On the ratio of debt to GSDP at 29.08 per cent, Patil defended the state and said, "Compare this to the ratio of Andhra Pradesh at 34 per cent, Bihar (71 per cent), Goa (40 per cent), Gujarat (30 per cent) or any other state in India and you will realise that Maharashtra enjoys the lower percentage of its debt stock ratio to GSDP."

Patil said that the state has recorded Rs 18,500 crore income from sales tax in 2004-05, which was much higher than what was recorded in other states.

"Rajasthan earned Rs 4,486 crore, Madhya Pradesh Rs 3,907 crore, Uttar Pradesh Rs 9,000 crore, Gujarat Rs 7,902 crore, West Bengal Rs 5,836 crore and Bihar Rs 2,474 crore in the fiscal 2004-05," he said.