Fifteenth Finance Commission of the Government of India visiting the state of Maharashtra

[Hindustani78]

Ministry of Finance
15-September, 2018 11:51 IST
Finance Commission to visit Maharashtra from 17th Sep, Intra state disparity and issues related to urbanisation to be focussed

The Fifteenth Finance Commission of the Government of India is visiting the state of Maharashtra from 17th to 19th September 2018. The Commission led by the Chairman Shri N.K.Singh, Members – Sh. Shaktikanta Das, Dr. Anoop Singh, Dr. Ashok Lahiri, Dr. Ramesh Chand and Secretary Shri Arvind Mehta along with other officials will have meetings with Chief Minister, Ministers and other officials of the state in Mumbai. There will be meetings with the leaders of various political parties, representatives of Trade and Industry, Urban Local Bodies and Panchayati Raj Institutions to understand the issues concerning the state.

Commission had also held a consultation meeting with economists in Pune in the month of August to understand the issues in the region. Ahead of the visit, Commission understood in New Delhi, various aspects of its finances and issues related to socio-economic spheres from Accountant General of Maharashtra.

Maharashtra is a high income State of the Indian Union. It is a leading industrial State and also one of the most urbanized States in India. It is also known as the host State to several leading educational institutions in the country. Maharashtra contributes around 15 per cent of the Gross Domestic Product of India. Service sector contributes 57 per cent of the state income, followed by industrial sector with 33 percent and remaining 9 per cent originates in the agriculture and allied sectors. However, high inter regional disparity has been a characteristic feature of the State since its inception in 1960. The state seems to have faltered in translating its high economic growth into commensurate human development.



The State is a front runner in terms of better fiscal management in the country since the enactment of state FRBM Act in 2006. The fiscal deficit of the state continues to be well within the limit of 3 per cent of GSDP. The debt stock to GSDP ratio is also well within the 17.5 per cent limit set by the Maharashtra Fiscal Responsibility and Budgetary Management Rules (MFRBM, 2011). Yet, a revenue deficit of 0.5 per cent of GSDP continues to be a worrisome factor for Maharashtra; the revenue deficit to GSDP ratio has increased even as the fiscal deficit to GSDP ratio has fallen. This indicates that debt is being used for revenue expenditures. Revenue expenditures show rigidities due to the presence of high levels of salary and interest payments. More stringent steps would be required to achieve complete sustainability. Complete sustainability would require a huge increment in the revenue generation capacity of the State. Inter-se Shares of the state for Tax Devolution has been on rise in past four finance commissions. Central transfers increased from 11 per cent to 16 per cent of total revenue receipts during 2012-17.

GST could well be a game- changer in this respect. No revenue loss to the state on implementation of GST. The tax to GSDP ratio for the State stands at about 6.24, which is far lesser than other comparable, large-sized developed States. It is also worrisome to note that the targeted Budget Estimate of the tax-GSDP ratio shows a secular decline over the past decade. Debt sustainability should be addressed through higher revenue generation rather than through expenditure contraction.



The pace of decentralization needs to be increased. As of March 2015, only 14 functions out of the indicated 29 functions have been fully transferred to the local bodies. The State Government allocates about 20 per cent of its revenues to local bodies; within the allocated funds, there is a heavy bias towards Panchayat Raj Institutions which receive 78 per cent of the allocated funds. The ratio of funds allocated to Urban Local Bodies is far lesser than the ratio of population residing within the urban areas in Maharashtra.



Main Issues which the Commission will focus upon:



• The State could not maintain the momentum of growth of revenue receipts during 2009-13 to 2014-17. The trend growth declined from 17.69% during 2009-13 to 11.05% in 2014-17.

• The trend growth of States own tax revenue declined from during 19.44% in 2009-13 to 8.16% in 2014-17

• The percentage of capital expenditure to total expenditure remained between 11 and 12 during 2013-17

• 5th SFC recommendations are ideally required to be implemented from 2014-15 onwards, and it appears in Maharashtra that even Report of the 4th SFC is pending

Sharp Social and Economic Social Disparity across various districts

• The state had a urbanisation rate of 45.23 in census 2011 as compared to All India Average of 31.16%. Mumbai city which is the commercial and financial capital contributes to around 2.5% of India’s GDP and 30.5% of the total tax collection in the Country.

• On the other hand, of 34 districts in Maharashtra, 16 districts of Vidarbha and Marathawada have per capita income below the state and national average.

• Of the 351 Development Blocks, 125 blocks in the State have been identified as socially backward on Human Development Index.

Poverty Rate of 17.35 as compared to 21.92 All India as per 2011-12 Tendulkar Estimates, though districts in north and east Maharashtra have high poverty.

• 21.2% of the State Population is SC/ST. The state is home to 7.9% of the total SC/ST Population in the Country (4th Rank after UP(14.07), WB(8.8%)and MP(8.8%)

• High poverty rates and slow poverty reduction and illiteracy among the STs in Maharashtra



Issue of Rural Distress and Farmer Suicides

1. Status of formal lending to farmers

2. Irrigation- only 18% of Maharashtra’s total cultivable land is irrigated while the national average is over 35%. This is despite Maharashtra accounting for 35% of the total number of irrigation projects in India. Maharashtra is spending less on irrigation than All India average.

3. Issue of Escalation of Costs in Irrigation Project and land acquisitions.

State govt. has also submitted a detailed memorandum to the Commission for consideration. Commission expects to gain an in-depth understanding of the peculiar issue related to the economic growth and development in Maharashtra during its interactions and meetings with the state govt.

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[Hindustani78]

12-September, 2018 16:34 IST
Transfer of land of M/s. Rashtriya Chemicals & Fertilizers (RCF) to Mumbai Metropolitan Regional Development Authority (MMRDA)

Transfer of land of M/s. RCF to Municipal Corporation of Greater Mumbai (MCGM); and Selling of Transferable Development Right (TDR) Certificate received/receivable against the transfer of land to MMRDA/MCGM


The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given ex-post facto approval for

1. transfer of land of M/s Rashtriya Chemicals & Fertilizers Ltd. (RCF) to Mumbai Metropolitan Regional Development Authority (MMRDA);
2. proposal for approval for transfer of land of M/s Rashtriya Chemicals & Fertilizers Ltd. (RCF) to Municipal Corporation of Greater Mumbai (MCGM) and
3. for selling of TransferableDevelopment Right (TDR) Certificate received/receivable against the transfer of land to MMRDA/MCGM.

Background:

RCF is a leading fertilizer and chemical manufacturing company in India in the Public Sector. It was established on 6th March, 1978 on the reorganization of erstwhile Fertilizer Corporation of India Ltd. Presently, the authorized share capital of RCF is Rs.800 Crore and paid up capital of Rs. 551.69 Crore. Company has been accorded coveted "Miniratna" status in 1997. MMRDA acquired 48,849.74 sq.mtrs. (8265 sq. mtrs. unencumbered/free land and 40584.74 sq. mtrs. encumbered land) of land of RCF and completed the construction of Eastern Free Way - AnikPanjrapol Link Road (APLR) and open for public use in the year 2014. RCF received TDR certificate of 16530 sq. mtrs. on 1.11.2017 issued by MMRDA against 8265 sq. mlrs. ofunencitmbered/free land as an interim relief. The claim of RCF for TDR/compensation against encumbered land admeasuring 40584.74 sq. mtrs.is being decided by the Arbitrator.

RCF was demanding from MCGM to delete the internal roads of RCF colony from their Development Plan of Mumbai for a long time. Subsequently, RCF agreed to hand over about 16000 sq. meters of land (subject to actualmeasurement at site) for construction of 18.3 meter DP road in lieu of TDR as compensation subject to mutually agreed terms & conditions.

MCGM in the development plan has shown reservation of 331.96 sq. meters of RCF land in front of the proposed township of RCF for public road widening. As per development control rules 1991 of MCGM, in case of reservation on the land it is mandatory to surrender the land, as road set back area to MCGM.

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[Hindustani78]

The Chairman of the 15th Finance Commission, Shri N.K. Singh along with the members in a meeting with the Chief Minister of Maharashtra, Shri Devendra Fadnavis and the Cabinet Ministers of Maharashtra, in Mumbai on September, 19, 2018.

The Chairman of the 15th Finance Commission, Shri N.K. Singh addressing the media regarding their visit to Maharashtra, in Mumbai on September, 19, 2018.

 

[Hindustani78]

https://www.thehindu.com/news/citie...-record-straight-on-state/article24989483.ece
Special Correspondent
Mumbai, September 20, 2018 00:31 IST
Updated: September 20, 2018 00:31 IST


Earlier picture misleading, says N.K. Singh; nod for State’s demands for funds

The 15th Finance Commission denied “casting aspersions” on Maharashtra’s financial and socio-economic performance. The commission is not in the business of “manufacturing” data and realised the earlier picture projected was “misleading”, chairman N.K. Singh said on Wednesday, in what came as a retraction of sorts from its previous stand on the State.

Political leaders, including those from the BJP, had slammed the commission for presenting a grim report card of Maharashtra.

“We want to set the record straight. The commission is not in the business of manufacturing data. Some of the figures [mentioned in] our note had emanated from the report of the Accountant General of Maharashtra. Having said that, on a more careful examination, we want to ensure no erroneous impression must be formed in this regard,” Mr. Singh said, while lauding the State government for presenting a cogent and well-argued memorandum to the panel.

The commission presented the summary of its impressions and observations on the State, following the conclusion of its two-day visit holding consultations with stakeholders.

‘Encouraging figures’
“Maharashtra has made progress on some very important parameters, even though number of States in India have slowed down growth wise during the same time. The figures we saw on Maharashtra revenue projection were encouraging. It is one State which is looking at a GST growth of 11%, far higher than the estimates of others,” Mr. Singh said.

Earlier this week, the commission had said the State could not maintain the momentum of growth of revenue receipts during 2009-13 to 2014-17. The trend growth declined from 17.69% during 2009-13 to 11.05% in 2014-17. The trend growth of the State’s own-tax revenue declined from 19.44% in 2009-13 to 8.16% in 2014-17. But the State’s figures said receipts dropped to just 13.8% in 2014-18 from 14.67% in 2009-14.

In its conclusion, the Commission agreed it should have taken a broader view on the years for which it calculated the data on revenue receipts. “It makes more sense to include 2017-18 figures in the calculations, which was brought to our notice by the State government when we came here. I compliment them for making a strong case for this,” Mr. Singh said.

Special fund for city
Sources said Chief Minister Devendra Fadnavis presented a number of demands to the commission, including an income distance criteria for greater devolution of divisible funds to the State. Among other measures, Mr. Fadnavis suggested the use of a socio-economic caste survey to measure deprivation in rural areas, incentives for States based on existing tree cover, additional ₹25,000 crore for backward regions, and ₹50,000 crore as a special support fund and status for Mumbai. Another ₹1,400 crore was sought for environmental management, ₹825 crore for cultural heritage preservation and ₹1,177 crore for forest conservation.

Mr. Singh said the commission had agreed to the demands, and lauded the State’s quest to become a trillion-dollar economy.

Meanwhile, the government presented its own set of data and interpretation to the commission. Defending the debt position and claims that it was using most of it on revenue expenditure, the State said 70% of the net debt is being set aside only for capital outlay. It told the panel that committed expenditure has reduced to 54% in 2017-18 from 64% in 2013-14. The Finance Commission had claimed the State’s revenue expenditure shows rigidities due to the presence of high levels of salary and interest payment.

 

[Hindustani78]

Ministry of Commerce & Industry
27-September, 2018 13:25 IST
Month long Startup India – Maharashtra Yatra to begin from 3rd October

The Startup India – Maharashtra Yatra will be launched on the 3rd of October, 2018 by Union Minister for Commerce & Industry and Civil Aviation, Suresh Prabhu, at Raj Bhawan, Mumbai. Maharashtra Governor, C. Vidyasagar Rao, Chief Minister of the State, Devendra Fadnavis, and Minister for Labour and Skill Development, Sambhaji Patil Nilangekar will grace the occasion.

After a successful run in Gujarat, Uttar Pradesh, Odisha, Uttarakhand, Madhya Pradesh, Chhattisgarh, Jharkhand, Andhra Pradesh, and Telangana – the Startup India Yatra is making its way to Maharashtra. This leg of the Startup India Yatra is being conducted by the Department of Industrial Policy and Promotion, Invest India, Skill Development and Entrepreneurship Department, Government of Maharashtra and Maharashtra State Innovation Society.

Startup India Yatra van, equipped with facilities for individuals and Startups to pitch their ideas, is scheduled to travel to 16 Districts, with 23 Van Stops and 14 Boot Camps, and will conclude at a Grand Finale in Nagpur on 3rd of November, 2018. The boot camps will include presentations on Startup India and Maharashtra Startup policy followed by extensive ideation workshops. An idea pitching session will be held to select the foremost ideas and Startups for the Grand Finale. The aspiring entrepreneurs are required to register at www.startupindia.gov.in to participate in the Yatra.

Organised under the Startup India initiative, ‘Startup India Yatra’ is a Tier 2/3 initiative that travels to small cities of the country in search of entrepreneurial talent, provide them an opportunity to get incubated, and help develop startup ecosystem in the State.



Click here for details of boot camps and van stops:



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