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<u>Maharashtra Budget 2004-05</u><br>Emphasis on Agricultural investment
Without doubt, Maharashtra is the numero uno state in terms of total investment in India. The state has been enjoying this distinction since the early 1990s. However, unlike other major states, bulk of the proposed investment proposals in Maharashtra is by state government agencies, who accounted for around 44 per cent of the total investment planned in the state.
Given the dominance of state government in projects investment, size of the annual plan and the budgetary allocations carry immense importance. The budget not only unveils the new developmental plans of the government, but also indicates the funds available for new and ongoing schemes.
The current year's state budget was presented by the finance minister Shri. Jayant Patil on 27 May 2004. The state's annual plan for 2004-05 has been fixed at Rs.19,984 crore - around 58 per cent higher than Rs.12,650 crore in the preceding year.
Among the capex plans chalked out for the coming years, investment in agricultural infrastructure has taken centre stage. This is clearly reflected in the five region-wise packages worth Rs.1,900 crore announced by the finance minister. These packages also aim to mitigate the regional imbalances witnessed in the state in investment and economic development.
Of the total Rs.318.3 crore earmarked for the "Vidharbha Vikas Package", Rs.104 crore will be spent on various irrigation projects. Similarly, the Marathwada Vikas Package of Rs 588 crore includes irrigation projects worth Rs.172.9 crore and rural supply water schemes worth Rs.91.5 crore.
The Konkan Vikas package of Rs 300 crore has envisaged an outlay of Rs 80 crore for irrigation, Rs 40 crore for road development and Rs 35 crore for tourism. Bulk of the Rs. 287.96 crore Khandesh Vikas Package is directed towards agriculture and irrigation projects.
Towards the development of drought prone areas, hilly areas and western ghat region, the budget has allocated a sum of Rs 452.56 crore. Again, the priority areas are irrigation, health and road development.
Power and roadways are the other two major sectors where the state wants to pour in additional money.
Under the power capacity expansion plan, the state government has permitted expansion of the Parali and Paras thermal power plants of MSEB by 250 MW each at a total cost of Rs.1,920 crore. A budgetary outlay of Rs. 47.82 crore has been allocated for these projects for the year 2004-05.
To improve the road conditions in the state, the government plans to enhance the quality of around 6,622 km of state highways and major district roads, at an estimated at cost of Rs.501 crore. In addition to this, the minister spelt out his government's intentions to go ahead with MUTP Phase I (Rs.4,526 crore) and Phase II (Rs.6,000 crore) and the related Rs.2,647 crore MUIP project.
The state government has announced an ambitious rehabilitation plan involving a total investment of Rs.5,600 crore to improve the living conditions of the poor people residing in Mumbai's Dharavi slums. The project will be undertaken with private participation.
These aforementioned mega infrastructure projects, though a welcome move by the state government, will no doubt put an additional burden on the fragile financial conditions of the state. Already, some of the mega projects announced in the irrigation and road sectors are facing time and cost overrun. Hence, it is imperative for the state government to shore up its financial position in order to ensure timely implementation of much-needed infrastructure projects.
<u>Maharashtra Budget 2004-05</u><br>Emphasis on Agricultural investment
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