The Maharashtra state government recently announced a 67 per cent cut in its spending for developmental works this fiscal. With a budget size second to the state of Uttar
Pradesh, Maharashtra has incurred an estimated revenue loss in excess of Rs. 50,000 crore over the months of March and April 2020. As per the expert panel
set up, it is estimated that the revenue for FY2021 could decline by an estimated 40 per cent or Rs. 1.40 lakh crore short of the state’s revenue projections. With no new
development schemes and existing schemes likely to be put on hold or scrapped, 33 per cent of the total outlay is expected to be released. This will be applicable even to
those schemes decided by the state cabinet before March 31, 2020.
