Maharashtra poised for 9 percent growth in 2007-08

March 18th, 2008 - 11:24 pm ICT by admin  

Mumbai, March 18 (IANS) Maharashtra is poised to record a 9 percent growth rate in 2007-08 as compared to the national economy’s growth at 8.7 percent during the same period. However, the debt position and infrastructure bottlenecks continue to be a matter of concern for the government, according to the State Economic Survey-2007-08. The document was tabled before both houses of Maharasthra legislature here Tuesday.

The survey said the annual average growth rate of gross state domestic product (GSDP) during the 10th Five-Year Plan (2002-07) remained at 8.3 percent. This was 0.3 percent higher than the Planning Commission’s target of 8 percent. At the national level, this growth was 7.8 percent for the same period.

The state managed to retain its prime position among all states in terms of per capita income and state income. At current prices, the per capita income for 2006-07 is estimated at Rs.41,331 as compared to the per capita national income of Rs.29,642.

The survey said Maharashtra’s debt burden position is expected to rise to Rs.1.5 trillion in 2007-2008 as compared to last year’s Rs.1.3 trillion. However, following the enactment of the Fiscal Responsibility and Budgetary Management Act, the revenue and fiscal deficits of the state as a percentage of the GSDP have substantially declined.

Discussing the issue of poverty, the Economic Survey said as per the estimates of the Planning Commission, the percentage of population below poverty line (BPL) in the state declined from 36.9 percent (1993-94) to 30.7 percent (2004-05). However, the absolute number of people in the BPL category grew by 1.25 million during the same period.

Similarly, the percentage of people in the BPL category at all-India levels stood at 27.5 percent (2004-05). The report cites increase in urban poverty as the main cause of increasing number of people in BPL category in the state.

A positive development reported in the document is the decline in the expenditure on the state government establishment, which declined to 41 percent in 2007-08 as compared to 59 percent of revenue receipts in 2002-03.

Moreover, of the total revenue expenditure, about 58 percent went towards developmental programmes in 2006-07.

The other salient points include: state’s income at current prices for the year 2006-07 estimated at Rs.4.4 trillion, overall literacy rate stands at 76.9 percent, projected state population by March 2008 to touch 108 million and the state tops in respect of bank deposits and gross credits.

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