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Maharashtra State Budget 2009-10 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Maharashtra FY 2009-10

Maharashtra State Budget 2009-10 Budget at a Glance

Total Receipts

Rs 95,000 crore

+15.9%

Total Expenditure

Rs 1.2 lakh crore

+14.3%

Fiscal Deficit

2.7%

Rs 25,000 crore

Capital Expenditure

Rs 20,000 crore

+11.1%

Tax Revenue

Rs 61,750 crore

+15.9%

Interest Payments

Rs 14,500 crore

12% of expenditure

Maharashtra Revenue Receipts 2009-10

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 61,750 crore (81.3%)
Non-Tax Revenue
Rs 14,250 crore (18.8%)

Maharashtra Expenditure Breakdown 2009-10

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 83.3%
Capital Expenditure 16.7%

Fiscal Deficit as % of GSDP — Maharashtra 2009-10

The fiscal deficit for Maharashtra in 2009-10 is 2.7% of GSDP (Rs 25,000 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 14,500 crore consume 12.1% of total expenditure.

Maharashtra State Budget 2009-10 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 1.13 lakh crore100%
1. Revenue ReceiptsRs 95,000 crore84.1%
a. Own Tax RevenueRs 61,750 crore54.6%
b. Non-Tax RevenueRs 14,250 crore12.6%
B. Total ExpenditureRs 1.2 lakh crore100%
1. Revenue ExpenditureRs 1 lakh crore83.3%
2. Capital ExpenditureRs 20,000 crore16.7%
of which: Interest PaymentsRs 14,500 crore12.1%
C. Fiscal DeficitRs 25,000 crore2.7% of GSDP

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

Maharashtra Budget 2009-10 Analysis & Highlights

Key Highlights

  • Global financial crisis impact: Maharashtra GSDP growth slowed to 5.8%, the weakest in a decade.
  • Mumbai terror attacks (Nov 2008) aftermath suppressed tourism and hospitality revenue.
  • Fiscal stimulus measures added Rs 3,000 crore to expenditure as state matched central initiatives.
  • State VAT collections grew only 4%, the slowest growth since VAT introduction.
  • Fiscal deficit widened to 2.8% of GSDP as revenues fell and counter-cyclical spending rose.
  • Congress-NCP coalition returned to power; Ashok Chavan succeeded Vilasrao Deshmukh as CM.
  • Agriculture contracted 2% following deficient monsoon across Marathwada.
  • IT sector layoffs in Pune affected 15,000 workers as global outsourcing demand declined.
  • Capital expenditure fell 12% to Rs 20,000 crore as government prioritized revenue spending.
  • State debt rose to Rs 2.2 lakh crore with borrowing costs averaging 8.5%.

Compare Maharashtra Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2005-062006-072007-082008-092009-10
Total ExpenditureRs 1.05 lakh croreRs 1.2 lakh crore
Revenue ReceiptsRs 82,000 croreRs 95,000 crore
Capital ExpenditureRs 18,000 croreRs 20,000 crore
Fiscal Deficit (% GSDP)3.1%2.7%
Own Tax RevenueRs 53,300 croreRs 61,750 crore

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

Understanding Maharashtra State Budget 2009-10

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