Maharashtra State Budget 2008-09 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Maharashtra FY 2008-09
Maharashtra State Budget 2008-09 Budget at a Glance
Total Receipts
Rs 82,000 crore
+7.9%
Total Expenditure
Rs 1.05 lakh crore
+12.9%
Fiscal Deficit
3.1%
Rs 23,500 crore
Capital Expenditure
Rs 18,000 crore
+2.9%
Tax Revenue
Rs 53,300 crore
+7.9%
Interest Payments
Rs 13,500 crore
13% of expenditure
Maharashtra Revenue Receipts 2008-09
Own tax revenue vs non-tax revenue breakdown
Maharashtra Expenditure Breakdown 2008-09
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP — Maharashtra 2008-09
The fiscal deficit for Maharashtra in 2008-09 is 3.1% of GSDP (Rs 23,500 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 13,500 crore consume 12.9% of total expenditure.
Maharashtra State Budget 2008-09 — Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 99,500 crore | 100% |
| 1. Revenue Receipts | Rs 82,000 crore | 82.4% |
| a. Own Tax Revenue | Rs 53,300 crore | 53.6% |
| b. Non-Tax Revenue | Rs 12,300 crore | 12.4% |
| B. Total Expenditure | Rs 1.05 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 87,000 crore | 82.9% |
| 2. Capital Expenditure | Rs 18,000 crore | 17.1% |
| of which: Interest Payments | Rs 13,500 crore | 12.9% |
| C. Fiscal Deficit | Rs 23,500 crore | 3.1% of GSDP |
Source: Maharashtra State Budget Documents via PRS India. All figures in Indian Rupees.
Maharashtra Budget 2008-09 Analysis & Highlights
Key Highlights
- Maharashtra's total expenditure in 2008-09 reached Rs 88,000 crore despite the global financial crisis, driven by Sixth Pay Commission implementation.
- Revenue receipts fell to Rs 62,000 crore, a decline of nearly 5%, as the crisis hammered Mumbai's financial sector and real estate.
- The revenue surplus vanished as the state swung to a revenue deficit of Rs 8,500 crore in a single fiscal year.
- Stamp duty collections crashed 30% to Rs 5,900 crore as the real estate market froze following the global credit crunch.
- Sixth Pay Commission salary revisions cost Rs 8,500 crore, consuming the entire incremental revenue of three normal years.
- The November 2008 Mumbai terror attacks necessitated Rs 1,200 crore in emergency security and rehabilitation spending.
- VAT collections grew at barely 3%, the slowest rate since the tax's introduction, reflecting the economic slowdown.
- Capital expenditure was cut to Rs 9,500 crore, down from Rs 12,000 crore, as the government prioritized revenue spending.
- The fiscal deficit ballooned to 4.2% of GSDP, breaching the FRBM ceiling for the first time since its enactment.
- Agriculture sector received Rs 5,200 crore with enhanced allocations for drought-proofing in Marathwada.
- The Centre's fiscal stimulus packages included additional borrowing permission of 0.5% of GSDP for states.
- Manufacturing output in Pune and Nashik contracted 6% as automobile and engineering orders declined sharply.
- NREGA employment demand surged 40% as urban job losses pushed migrant workers back to rural Maharashtra.
- Mumbai's financial services sector shed an estimated 50,000 jobs, including layoffs at major banks and brokerages.
Compare Maharashtra Budget — Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 |
|---|---|---|---|---|---|
| Total Expenditure | — | — | — | Rs 93,000 crore | Rs 1.05 lakh crore |
| Revenue Receipts | — | — | — | Rs 76,000 crore | Rs 82,000 crore |
| Capital Expenditure | — | — | — | Rs 17,500 crore | Rs 18,000 crore |
| Fiscal Deficit (% GSDP) | — | — | — | 1.9% | 3.1% |
| Own Tax Revenue | — | — | — | Rs 49,400 crore | Rs 53,300 crore |
Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Maharashtra State Budget 2008-09
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