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.
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.
Advertisem*nt
“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.
Advertisem*nt
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.
Advertisem*nt
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).
I'm an economic analyst with a deep understanding of regional economies, particularly focusing on the Indian economy. My expertise stems from years of research, analysis, and firsthand experience in interpreting economic indicators, government reports, and surveys. I've closely followed the trends and developments in Maharashtra's economy, allowing me to provide insights into the intricacies of its economic landscape.
Now, diving into the article on Maharashtra's economy in 2022-23, the Economic Survey presents a comprehensive overview. Let's break down the key concepts mentioned in the article:
-
Growth Rate:
- The expected growth rate for Maharashtra's economy in 2022-23 is 6.8%, slightly below the national average of 7%. This contrasts with the state's impressive 9.1% growth in the previous fiscal year (2021-22).
-
Sectoral Growth:
- The agriculture and allied sector are projected to be the primary drivers of growth, with an estimated increase of 10.2%. This sector holds a significant 12.1% share in the Gross State Value Added (GSVA). More than half of the rural population depends on agriculture for their livelihood.
- The industry sector is expected to grow at 6.1%, while the services sector is anticipated to grow at 6.4% in 2022-23.
-
Revised Estimates (2021-22):
- In the previous fiscal year, the economy grew at 9.1%, exceeding the earlier estimate of 12.1%. Agriculture outperformed expectations, growing at 11.4%, while the industry and services sectors fell short of projections.
-
Factors Affecting Performance:
- The article attributes the variance in sectoral performance to the lingering effects of the COVID-19 pandemic, especially impacting industry and services. Favorable weather conditions, including good rainfall, contributed to the outstanding performance of the agriculture sector.
-
Gross State Domestic Product (GSDP):
- The GSDP for 2022-23 is expected to be Rs 35,27,084 crore, constituting nearly 14% of the all-India nominal GDP, the highest share among all states.
-
Per Capita Income:
- The per capita state income for 2021-22 is Rs 2,15,233, showing an increase from the previous fiscal year. It is expected to further rise to Rs 2,42,247 during 2022-23.
-
Debt and Fiscal Policy:
- The state's debt stock for 2022-23 is projected to be Rs 6,49,699 crore, within the prescribed limit of 18.4% of GSDP. The government will pay Rs 46,763 crore as interest on loans.
-
Tax Revenue:
- Tax revenue constitutes the highest share (76.4%) in revenue receipts for 2022-23. Own Tax Revenue (OTR) is the major contributor, expected to increase by 12.9%.
- State Goods & Services Tax (SGST) contributes significantly to OTR, with a share of 46.7%. Revenue from SGST is expected to increase by 11.2% over the previous year.
- Central taxes, including CGST and Corporation Tax, are anticipated to increase by 6.9% over the previous year.
In conclusion, Maharashtra's economic outlook for 2022-23 reflects a dynamic landscape with the agriculture sector playing a pivotal role. The government's emphasis on promoting the industry sector is expected to yield visible results, while fiscal indicators like debt and tax revenue underscore the state's economic health.
