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By the end of the 14th Five-Year Plan in 2027, Maharashtra will need Rs 23-24 lakh-crore at current prices, according to a panel headed by economist Vijay Kelkar.
The state would be able to allocate Rs 2.17 lakh-crore in the remaining period of the 12th Five-Year Plan, ending 2017. In the 13th (2018-2022) and 14th (2023-2027) Plans, resources available would be Rs 6.7 lakh-crore and Rs 14.8 lakh-crore, respectively, claimed the report of the panel on ‘Balanced regional development issues in Maharashtra’.
The panel has observed that the performance of the state in maintaining fiscal discipline has been noteworthy and has resulted in a comfortable position on borrowing capacity. However, it has cautioned that the greater challenge for the state government is ensuring the efficient use of its resources.
The Bharatiya Janata Party (BJP)-Shiv Sena government has set up a Cabinet sub-committee, headed by Finance Minister Sudhir Mungantiwar, to examine the panel’s report and make suggestions for implementation.
A minister told Business Standard, “The panel, which was appointed by the Congress-NCP government in 2011, gave its report in October 2013. However, the previous government sat on it in view of the assembly election last year. The BJP-Sena government has tabled the report in December last year but it will take a formal decision on whether or not to accept panel's recommendations only after the Cabinet sub- committee’s findings.”
The Kelkar panel has suggested more enhanced level of market borrowings as the state’s financial liabilities will still remain within manageable limits.
The panel has also made a strong case for the implementation of Big Push projects and the completion of incomplete projects especially in the underdeveloped Vidarbha and Marathwada to reduce the regional imbalance. Infact, BJP-Shiv Sena during assembly poll had criticised Congress-NCP government for neglect towards these regions while providing more funds to the western and rest of Maharashtra.
The Kelkar panel observed: “More rapid growth in the lagging regions does not warrant holding back or slowing down the growth process in the relatively advanced region. On the contrary the improved infrastructural connectivity across regions and further closer integration of their markets would elicit complementary positive feedback growth effects across regions.”
Another minister said it is a big challenge to mobilise funds to fill up the gap and expedite development especially in Vidarbha and Marathwada.
“The Cabinet sub-committee’s recommendations will be crucial to put in place a time bound roadmap for the same,” he said.
