Given the grim financial situation in the state, the state Budget 2001-02 was expected to offer bold initiatives. However, there appears to be a lack of political and administrative will to deal with substantive issues. The budget not only fails to address issues of expenditure management - the question of the burden of wages and salaries, for instance, has assumed serious proportions - but only outlines temporary measures to put the state's finances on a firmer footing.
The Maharashtra Budget 2001-02 was presented to the state legislature on March 27, 2001. Looking to the state of Maharashtra’s finances, one had expected some bold initiatives to deal with the grim financial situation in which the state finds itself. Unfortunately, the budget came as a disappointment. There seems to be a lack of political and administrative will to deal with the critical issues on hand.
The revenue deficit for 2000-01 which was expected to come down sharply to Rs 3,938.93 crore from that of the preceding year (Rs 4,268.75 crore), has actually gone up to Rs 6,224.39 crore. The revenue deficit for 2001-02 has been projected at Rs 2,991.02 crore though looking to past trends, it is doubtful if it can be compressed to this extent. Interest payments alone are expected to jump from Rs 4,883.59 crore in 1999-2000 to Rs 6,414.85 crore in 2001-02.
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