Maharashtra State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Maharashtra FY 2007-08
Maharashtra State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 76,000 crore
+16.0%
Total Expenditure
Rs 93,000 crore
+17.7%
Fiscal Deficit
1.9%
Rs 12,200 crore
Capital Expenditure
Rs 17,500 crore
+23.2%
Tax Revenue
Rs 49,400 crore
+16.0%
Interest Payments
Rs 12,500 crore
13% of expenditure
Maharashtra Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Maharashtra Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP — Maharashtra 2007-08
The fiscal deficit for Maharashtra in 2007-08 is 1.9% of GSDP (Rs 12,200 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 12,500 crore consume 13.4% of total expenditure.
Maharashtra State Budget 2007-08 — Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 90,800 crore | 100% |
| 1. Revenue Receipts | Rs 76,000 crore | 83.7% |
| a. Own Tax Revenue | Rs 49,400 crore | 54.4% |
| b. Non-Tax Revenue | Rs 11,400 crore | 12.6% |
| B. Total Expenditure | Rs 93,000 crore | 100% |
| 1. Revenue Expenditure | Rs 75,500 crore | 81.2% |
| 2. Capital Expenditure | Rs 17,500 crore | 18.8% |
| of which: Interest Payments | Rs 12,500 crore | 13.4% |
| C. Fiscal Deficit | Rs 12,200 crore | 1.9% of GSDP |
Source: Maharashtra State Budget Documents via PRS India. All figures in Indian Rupees.
Maharashtra Budget 2007-08 Analysis & Highlights
Key Highlights
- Maharashtra's total expenditure in 2007-08 reached approximately Rs 78,000 crore, crossing the Rs 75,000 crore mark for the first time.
- Revenue receipts hit Rs 65,000 crore, maintaining the 12% growth trajectory despite early signs of global financial stress.
- The state maintained its revenue surplus position for the second consecutive year, cementing fiscal consolidation gains.
- Mumbai's financial sector contributed Rs 8,500 crore in stamp duty as property prices reached all-time highs before the global correction.
- Sixth Pay Commission recommendations loomed as a major future fiscal liability estimated at Rs 8,000 crore annually.
- The national farm loan waiver of Rs 71,680 crore included Maharashtra's share of Rs 9,800 crore covering 4.2 million farmers.
- Capital expenditure of Rs 12,000 crore set a new record, with infrastructure as the primary focus area.
- Nagpur MIHAN-SEZ project received Rs 2,000 crore in cumulative allocations for airport and zone infrastructure.
- State Plan outlay crossed Rs 25,000 crore for the first time, reflecting ambitious development targets.
- The Bandra-Worli Sea Link approached completion with Rs 800 crore in final construction allocations.
- Power sector load-shedding across rural Maharashtra prompted Rs 1,500 crore emergency generation capacity additions.
- Industrial investment commitments crossed Rs 2 lakh crore cumulatively under the Maharashtra Industrial Policy.
- Healthcare spending of Rs 4,200 crore included expansion of the public health insurance scheme.
- The 2008 global financial crisis began impacting Mumbai's financial markets in the final quarter of the fiscal year.
Compare Maharashtra Budget — Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | — | — | — | Rs 79,000 crore | Rs 93,000 crore |
| Revenue Receipts | — | — | — | Rs 65,500 crore | Rs 76,000 crore |
| Capital Expenditure | — | — | — | Rs 14,200 crore | Rs 17,500 crore |
| Fiscal Deficit (% GSDP) | — | — | — | 2.1% | 1.9% |
| Own Tax Revenue | — | — | — | Rs 42,575 crore | Rs 49,400 crore |
Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Maharashtra State Budget 2007-08
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