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Maharashtra State Budget 2001-02 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Maharashtra FY 2001-02

Maharashtra State Budget 2001-02 Budget at a Glance

Total Receipts

Rs 33,500 crore

+4.4%

Total Expenditure

Rs 45,000 crore

+7.1%

Fiscal Deficit

3.7%

Rs 11,500 crore

Capital Expenditure

Rs 5,800 crore

+11.5%

Tax Revenue

Rs 21,775 crore

+4.4%

Interest Payments

Rs 6,300 crore

14% of expenditure

Maharashtra Revenue Receipts 2001-02

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 21,775 crore (81.3%)
Non-Tax Revenue
Rs 5,025 crore (18.8%)

Maharashtra Expenditure Breakdown 2001-02

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 87.1%
Capital Expenditure 12.9%

Fiscal Deficit as % of GSDP — Maharashtra 2001-02

The fiscal deficit for Maharashtra in 2001-02 is 3.7% of GSDP (Rs 11,500 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Maharashtra's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 6,300 crore consume 14.0% of total expenditure.

Maharashtra State Budget 2001-02 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 41,800 crore100%
1. Revenue ReceiptsRs 33,500 crore80.1%
a. Own Tax RevenueRs 21,775 crore52.1%
b. Non-Tax RevenueRs 5,025 crore12.0%
B. Total ExpenditureRs 45,000 crore100%
1. Revenue ExpenditureRs 39,200 crore87.1%
2. Capital ExpenditureRs 5,800 crore12.9%
of which: Interest PaymentsRs 6,300 crore14.0%
C. Fiscal DeficitRs 11,500 crore3.7% of GSDP

Source: Maharashtra State Budget Documents via PRS India. All figures in Indian Rupees.

Maharashtra Budget 2001-02 Analysis & Highlights

Key Highlights

  • Maharashtra's total expenditure in 2001-02 stood at approximately Rs 42,500 crore, reflecting a 9% increase over the previous fiscal year.
  • Revenue receipts were severely impacted by the post-dotcom global slowdown, with sales tax collections growing at just 4% against a projected 12%.
  • The state ran a revenue deficit of Rs 5,800 crore, one of the highest among Indian states at the time.
  • Agriculture sector allocation of Rs 3,200 crore targeted sugarcane growers in western Maharashtra and cotton farmers in Vidarbha.
  • Mumbai's textile mill land redevelopment controversy shaped urban planning allocations of Rs 1,100 crore.
  • Debt servicing consumed 22% of revenue receipts, a warning sign flagged by the Comptroller and Auditor General.
  • Power sector subsidies of Rs 4,500 crore to the Maharashtra State Electricity Board drained fiscal resources.
  • Education spending at Rs 6,800 crore covered salaries for over 400,000 government school teachers.
  • The Konkan Railway completion spurred Rs 800 crore in regional connectivity investments.
  • Road development allocation of Rs 2,400 crore focused on the Golden Quadrilateral segments within Maharashtra.
  • Social welfare spending of Rs 1,900 crore included OBC and SC/ST scholarship programs.
  • The irrigation sector received Rs 3,100 crore, though utilization rates in Vidarbha remained below 40%.
  • State borrowings crossed Rs 8,000 crore for the first time, raising concerns about medium-term debt sustainability.
  • Industrial incentives of Rs 600 crore targeted the nascent IT sector in Pune and the Hinjewadi IT Park development.

Compare Maharashtra Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2000-012001-02
Total ExpenditureRs 42,000 croreRs 45,000 crore
Revenue ReceiptsRs 32,100 croreRs 33,500 crore
Capital ExpenditureRs 5,200 croreRs 5,800 crore
Fiscal Deficit (% GSDP)3.4%3.7%
Own Tax RevenueRs 20,865 croreRs 21,775 crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Maharashtra State Budget 2001-02

The Maharashtra state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Maharashtra Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Maharashtra with other states

Side-by-side comparison of fiscal metrics across Indian states