Maharashtra State Budget 2006-07 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Maharashtra FY 2006-07
Maharashtra State Budget 2006-07 Budget at a Glance
Total Receipts
Rs 65,500 crore
+17.4%
Total Expenditure
Rs 79,000 crore
+16.2%
Fiscal Deficit
2.1%
Rs 11,500 crore
Capital Expenditure
Rs 14,200 crore
+31.5%
Tax Revenue
Rs 42,575 crore
+17.4%
Interest Payments
Rs 11,300 crore
14% of expenditure
Maharashtra Revenue Receipts 2006-07
Own tax revenue vs non-tax revenue breakdown
Maharashtra Expenditure Breakdown 2006-07
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP — Maharashtra 2006-07
The fiscal deficit for Maharashtra in 2006-07 is 2.1% 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 is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 11,300 crore consume 14.3% of total expenditure.
Maharashtra State Budget 2006-07 — Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 77,500 crore | 100% |
| 1. Revenue Receipts | Rs 65,500 crore | 84.5% |
| a. Own Tax Revenue | Rs 42,575 crore | 54.9% |
| b. Non-Tax Revenue | Rs 9,825 crore | 12.7% |
| B. Total Expenditure | Rs 79,000 crore | 100% |
| 1. Revenue Expenditure | Rs 64,800 crore | 82.0% |
| 2. Capital Expenditure | Rs 14,200 crore | 18.0% |
| of which: Interest Payments | Rs 11,300 crore | 14.3% |
| C. Fiscal Deficit | Rs 11,500 crore | 2.1% of GSDP |
Source: Maharashtra State Budget Documents via PRS India. All figures in Indian Rupees.
Maharashtra Budget 2006-07 Analysis & Highlights
Key Highlights
- Maharashtra's total expenditure in 2006-07 surged to Rs 68,000 crore, reflecting an unprecedented 18% growth driven by development spending.
- Revenue receipts crossed Rs 58,000 crore as the VAT-led tax reform and economic boom generated extraordinary buoyancy.
- The state achieved revenue surplus for the first time in over a decade, marking a historic fiscal milestone.
- Prime Minister's Vidarbha Relief Package of Rs 3,750 crore from the Centre supplemented state spending in distressed cotton districts.
- Mumbai's real estate market peaked with stamp duty revenues crossing Rs 7,500 crore, a 35% jump over the previous year.
- Capital expenditure reached Rs 10,500 crore, the highest ever, targeting irrigation and road infrastructure.
- IT/ITES exports from Maharashtra crossed $8 billion, with Pune emerging as India's third largest IT hub.
- The Maharashtra Industrial Development Corporation approved 12 new SEZ proposals worth Rs 25,000 crore in investment.
- Agricultural credit flow doubled to Rs 18,000 crore following RBI directives on priority sector lending.
- Power sector reforms progressed with MSEDCL reducing AT&C losses from 34% to 28%.
- Mumbai Metro Phase 1 received administrative approval with an estimated cost of Rs 2,356 crore.
- Fiscal deficit fell below 3% of GSDP for the first time, meeting the FRBM Act target ahead of schedule.
- Education spending crossed Rs 10,000 crore with teacher recruitment drives across Marathwada and Vidarbha.
- Urban infrastructure spending of Rs 4,500 crore included JNPT port expansion and Navi Mumbai airport land acquisition.
Compare Maharashtra Budget — Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 |
|---|---|---|---|---|---|
| Total Expenditure | — | — | — | Rs 68,000 crore | Rs 79,000 crore |
| Revenue Receipts | — | — | — | Rs 55,800 crore | Rs 65,500 crore |
| Capital Expenditure | — | — | — | Rs 10,800 crore | Rs 14,200 crore |
| Fiscal Deficit (% GSDP) | — | — | — | 2.5% | 2.1% |
| Own Tax Revenue | — | — | — | Rs 36,270 crore | Rs 42,575 crore |
Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Maharashtra State Budget 2006-07
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.
Explore More
Compare Maharashtra with other states
Side-by-side comparison of fiscal metrics across Indian states