Mumbai, Oct 10 Maharashtra Cabinet on Thursday gave approval to the Rs 24,702.92 crore Jalna-Nanded expressway which will be connecting to the Mumbai-Nagpur Samruddhi expressway.
The Cabinet's nod came at a time when the state Finance Department had cautioned the government to ensure that the fiscal deficit does not cross 3 per cent of gross state domestic product (GSDP).
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In the wake of a slew of welfare and development schemes and the supplementary demands of Rs 1 lakh crore, the fiscal deficit has already crossed Rs 2 lakh crore though it is well within the 3 per cent limit of GSDP, the Finance Department is of the view that the government should take adequate steps.
The Finance Department in its remarks said: “The debt-equity ratio has been fixed as 52.81:47.19 and as per the state fiscal policy, the deficit to GSDP has been fixed at 2.59 per cent. The state will have to raise loans for various social and welfare schemes announced. In addition, more loans will have to be availed to complete various infrastructure projects undertaken by different administrative departments.”
It added that it cannot be neglected that in such case fiscal deficit to GSDP can cross 3 per cent.
“Therefore the said project should be financially planned in a manner where there will be no financial burden on the state,” said the department.
The Public Works Department (PWD) in its reply said that the same will be considered.
The Jalna-Nanded expressway is likely to cut short the present 226 km distance between the two cities by 45 km and the journey time is likely to come down to two hours than present four hours. A special-purpose vehicle for the same has also been formed.
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The state Finance Department has been consistently warning about the possible increasing burden on the state treasury as a result of various schemes announced by the state government and the loans to be availed for various infrastructure projects.
The department recently observed in a proposal seeking revised administrative approval for the construction of sports complexes that the Maharashtra government is facing ‘financial pressure’ due to revenue deficit, fiscal responsibility and announcement of new schemes, as a result of which it cannot accept increased liability.
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