Maharashtra economy in 2022-23 is expected to grow at 6.8 per cent as against 7 per cent of the Indian economy, according to the Economic Survey of Maharashtra 2022-23, which was presented in the state Legislative Assembly by Deputy Chief Minister and Finance Minister Devendra Fadnavis on Wednesday.
By comparison, the state economy expanded by 9.1 per cent in 2021-22.
According to the survey, the agriculture and allied sector will be the prime driver of the growth in the state economy in 2022-23, with an estimated increase of 10.2 per cent. Agriculture and allied activities, one of the prime sectors of the economy, accounts for an average 12.1 per cent share in the Gross State Value Added. More than half of the rural population in the state is dependent on agriculture and allied activities for livelihood.
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The industry sector is expected to grow at 6.1 per cent in 2022-23 while the services sector is expected to grow at 6.4 per cent in 2022-23.
‘The focus on the industry sector is visible. The government has been aggressively promoting the state to attract industries. The results will be visible,’ said an official from the industries department.
As per the revised estimates for 2021-2022, the economy grew by only 9.1 per cent as against the estimate of 12.1 per cent. Every sector, barring agriculture, floundered from the projections made last year.
While agriculture and allied services had a growth projection of 4.4 per cent for 2021-22, the sector did remarkably well, notching a growth of 11.4 per cent. The industry and service sector, however, also suffered a setback with both being unable to meet the growth projections of 11.9 per cent and 13.5 per cent, respectively, made in the last survey. The industry sector for 2021-22 grew at 3.8 per cent while services sector grew at 10.6 per cent.
According to an official from the finance department, sectors like industry and services were still feeling the effects of the Covid-19 pandemic. ‘On the other hand, we had good rainfall. There was demand and for crops like sugarcane and oilseeds, we had record breaking production. The change in estimated numbers and actuals could be the result of this,’ an official said on why the agriculture sector did so well when compared to the other sectors.
Meanwhile, the Gross State Domestic Product (GSDP) for 2022-23 is expected to be Rs 35,27,084 crore, which contributes to nearly 14 per cent share in the all-India nominal GDP. This share is the highest among all the states in the country.
The per capita state income for 2021-22 is Rs 2,15,233, an increase from Rs 1,83,704 in 2020-21. This income is expected to rise to Rs 2,42,247 during 2022-23.
In 2022-23, debt stock of the state is expected to be Rs 6,49,699 crore and its percentage with the GSDP is well within the prescribed limit (18.4 per cent) as per the ‘Medium Term Fiscal Policy, Fiscal Policy Strategy Statement And Disclosures For Maharashtra 2022-23’. According to the finance department, the government will be paying Rs 46,763 crore as interest on loans.
Tax revenue has the highest share (76.4 per cent) in revenue receipts in 2022-23 (budgetary estimates). In tax revenue, Own Tax Revenue (OTR) is the major contributor (83.3 per cent) and is expected to increase by 12.9 per cent over the previous year.
Share of State Goods & Services Tax (SGST) in OTR is 46.7 per cent, followed by tax on sales, trade and others with 19.6 per cent in 2022-23 (budgetary estimates). Revenue from SGST is expected to increase by 11.2 per cent over the previous year.
As per the budgetary estimates 2022-23, share in central taxes, which includes Central Goods & Services Tax (CGST), Corporation Tax and others, is expected to increase by 6.9 per cent over the previous year. In central taxes devolved by the Centre to the state, the expected share of CGST is 32.8 per cent and Corporation Tax is 31.2 per cent in 2022-23 (budgetary estimates).