Mumbai (Maharashtra) [India], March 7 : Maharashtra's economy is expected to grow 7.3 per cent in the current financial year 2024-25, the state government's Economic Survey tabled in th Assembly on Friday showed.
The Economic Survey document often gives insights about the state of the economy and various indicators of that financial year and some outlook for the next year. The survey document is tabled in the Assembly or the Parliament, typically a day prior to the Budget presentation.
The western state, which has the largest GSDP among states, is projected to grow at a rate higher than the national GDP projections.
According to the central government's latest projections, the Indian economy is expected to grow by 6.5 percent in 2024-25, compared to 8.2 percent growth in 2023-24. This is 10 basis points less than RBI estimates, which have projected real GDP growth for 2024-25 at 6.6 percent.
"Maharashtra's economy will grow faster than the country's economy, which is good news for the state," the state government said in a note.
The performance of various sectors of the state also shows positive growth in 2024-25:
The agriculture and allied sectors are expected to grow by 8.7 percent. According to the Economic Survey, the key reasons for the increase in the state's agricultural sector are a good monsoon and the use of improved agricultural technology.
The industrial sector's growth is estimated to be 4.9 percent. The Maharashtra government asserted that it has taken some important steps to boost industrialization, manufacturing, and mining.
The services sector is set to grow by 7.8 percent. The growth of IT, banking, financial services, and tourism will further strengthen the sector.
Maharashtra's revenue expenditure in 2024-25 is expected to be Rs 519,514 crore, which is higher than the revised estimate for 2023-24. This will include an increase in spending on schools, health, water supply, and public utilities.
Capital Receipts and Expenditure: According to the estimates for 2024-25, the share of capital receipts in total receipts is estimated at 24.1 percent, and capital expenditures in total expenditures is estimated at 22.4 percent.
This essentially means that the state government intends to invest more in long-term development and infrastructure.
The state's fiscal deficit for 2024-25 is expected to be 2.4 percent of GSDP.
"This is an indicator of a balanced and sustainable approach to the state's economic planning," the state government said.
The difference between total revenue and total expenditure of the government is termed as the fiscal deficit. It is an indication of the total borrowing that the government may need.
The Maharashtra Annual Plan 2024-25 has set a total expenditure target of Rs 1,92,000 crore. Out of this, Rs 23,528 crore has been reserved for District Annual Plans. This fund will be used to improve and develop infrastructure in rural and urban areas of the state.
"The state's GSVA (General Government Value Added) will increase significantly due to the growth of agriculture, industry and services sectors, and the fiscal planning will remain sustainable due to a balanced government expenditure policy. This is expected to lead to a long-term growth of the state's economy," the state government said.
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