Report No. °25053-IN India Maharashtra: Reorienting Government to Facilitate Growth and Reduce Poverty (In Two Volumes) Volume 11: Statistical Appendix, Other Annexes and Workshop Programs October 31, 2002 Poverty Reduction and Economic Management Unit South Asia Region Document of the World Bank Currency Rs/ US$ Currency Official Unified Market ' Prior to June 1966 4.76 June 6, 1966, to mid-December 1971 7.50 Mid-December 1971 to end-June 1972 7.28 1971-72 7.44 1972-73 7.71 1973-74 7.79 1974-75 7.98 1975-76 8.65 1976-77 8.94 1977-78 8.56 1978-79 8.21 1979-80 8.08 1980-81 7.89 1981-82 8.93 1982-83 9.63 1983-84 10.31 1984-85 11.89 1985-86 12.24 1986-87 12.79 1987-88 12.97 1988-89 14.48 1989-90 16.66 1990-91 17.95 1991-92 24.52 1992-93 26.41 30.65 1993-94 31.36 1994-95 31.40 1995-96 33.46 1996-97 35.50 1997-98 37.16 1998-99 42.06 1999-00 43.33 2000-01 45.69 2001-02 47.69 Note: The Indian fiscal year runs from April 1 through March 31. Source: IMF, International Finance Statistics (IFS), line "rf"; Reserve Bank of India. n A dual exchange rate system was created in March 1992, with a free market for about 60 percent of foreign exchange transactions. The exchange rate was reunified at the beginning of March 1993 at the free market rate. Vice President: Ms. Mieko Nishirnizu Country Director: Mr. Edwin Lim Sector Director: Mr. Sadiq Ahmed Sector Manager: Mr. Sanjay Pradhan Task Leaders: Mr. Vinaya Swaroop, Lead Economnist Ms. Paramita Dasgupta, Economist INDIA Maharashtra: Reorienting Government to Facilitate Growth and Reduce Poverty Volume II TABLE OF CONTENTS Annexes Annex I Maharashtra's Own Revenues ............................................1I Annex 2 The Status of VAT Implementation in Maharashtra .............................................2 Annex 3 Revenue Effect of sales tax exemptions and incentives: Details .............................................4 Annex 4 Other Sources of own revenue in Maharashtra .............................................6 Annex 5 Key Institutions for effective tax administration .............................................7 Annex 6 Proposed system for RE, BE and MTFRP estimation ............................................ 10 Annex 7 Suggestions for integrated Check Posts ............................................ 13 Annex 8 Excise enforcement and administration ............................................ 14 Annex 9 Molasses Recovery from Distilleries in Maharashtra ............................................ 15 Annex 10 Improving Property Right Protection and Property Valuation in Maharashtra .16 Annex I 1 Additional Issues in Motor Vehicles Taxation .17 Annex Tables Annex Table Al Tax Effort and Fiscal Discipline Index: Interstate Comparison ......................................1 Annex Table A2 Estimated Revenue Loss Due to Sales Tax Concessions .............................................4 Annex Table A3 Package Scheme of Incentives .............................................5 Annex Table A4 Average Impact of Package Schemes on Receipts ............................................. 5 Annex Table A5 Molasses Recovery from Distilleries in Maharashtra ............................................ 15 Annex Table A6 Existing and Suggested Tax Rates on Motor Vehicles ............................................ 18 Statistical Appendix Contents.20 A1.1 Maharashtra: Gross State Domestic Product at Factor Cost by Industry of Origin (Rs Billion) A1.2 Maharashtra: Gross State Domestic Product at Factor Cost by Industry of Origin (Rs Billion) A1.3 State-wise Headcount Poverty Ratios (%) A2.1 Maharashtra: Revenue Expenditure (Rs Billion) A2.2 Maharashtra: Revenue Receipts (Rs Billion) A2.3 Maharashtra: Capital Expenditure & Net Lending (Rs Billion) A2.4 Maharashtra: Fiscal Summary (Rs Billion) A2.5 Maharashtra: Fiscal Summary (% GSDP) A2.6 Maharashtra: Outstanding Stock of Bond Guarantees issued by Government (Rs Billion) A2.7 State-Wise Composition of Outstanding Debt A.3.1 Revenue and Components per Capita, 2000-01 (in Current Rupees) A.3.2 Maharashtra's Revenue Receipts (Percentages of GSDP) A.3.3 Long Run Buoyancies of Own Revenues and Components, 1980-81 to 1999-2000 A.3.4 Performance of GSDP buoyancy and Simple Growth Rate Models in Maharashtra A4.1 Maharashtra State Electricity Board -- Operational Performance (1991-01) A4.2 Maharashtra State Electricity Board --Financial Performance (1991-01) A4.3 Inter-State Comparison: Selected Indicators of SEB Perfornance A4.4 Maharashtra: Growth of Irrigated Area (in'000 ha) by Source, 1960-61 to 2000-01 A4.5 Maharashtra: Region-wise Growth of Irrigated Area (in '000 ha), 1960-61 to 1999-00 A4.6 Maharashtra: Irrigation Potential Created and Utilized (in million hectares) A4.7 Maharashtra: Irrigation Development Corporations - Debt Servicing Schedule A4.8 Maharashtra: Cotton Procurement Scheme A5. 1 Basic Education Indicators for Classes I - V, 14 Major Indian States, 1999-00 A5.2 State-wise Public Spending in Education, Sports, Art and Culture (% GSDP) A5.3 State-wise Public Spending in Medical and Public Health and Family Welfare (% GSDP) Workshop agendas of various workshops held in relation to the Maharashtra Report .................................. 41 3 5e e Vdestre- eeses-ag 3 I->_S 2 Annex 2: The status of VAT implementation in Maharashtra Activity Desirabi Desirable end Status in UP (11 Remarks e start date (months months prior to date prior to VAT launch) (months launch) prior to VAT launch) Preparatory Activity Finalize VAT Design 20 Not finalised Central decisions and legislation awaited Study trip to countries 20 Not undertaken. Inadequate attention paid to business with VAT processes and implementing automation. Set up VAT 18 12 months Set up in December, implementation cell after launch 2001 Appoint external 18 0 Under consideration Progressive states like AP, Delhi, consultants Karnataka have done so in 2000 or 2001. Prepare VAT 18 Not done This is a serious deficiency implementation calendar Legislation Draft Law 18 14 Second draft stage. Under revision Draft rules 14 12 To commence Ordinance for pre- 3 No time frame. May result in administration obstacles registration of dealers Current registration and under-registration of new dealers to continue and be added to Ordinance/Act 0 _ Publicity and consultation Publicity for design, law I 1 8 In planning stage. To Should be done in stages, starting and key procedures and commence with design and law obligations Publish VAT guide 8 6 Not done. Registration leaflet and 3 I To be done publicity I__II___ Organizational restructuring Design 17 16 Functional ro- Continuation of the current, single organisation design officer per taxpayer system will result under discussion - in missing a key opportunity to draft plan in increase efficiency and reduce existence corruption through functional reorganization as in most developing country VATs as well as in progressive Indian States Implementation (in 16 2 months after stages) launch of which Large Taxpayer 9 6 Not envisaged Special units for control of the 300 Unit largest dealers protects revenue interest - widely used in developing country administrations of which Taxpayer 9 6 Separate units exist Registration ___I__ 3 ofwhich Tax collection | 12 0 | No change envisaged | and liaison with banks I I Iin current system l Forms and procedure manuals Registration form and 7 6 To commence certificate design Other formns 5 3 To conmmence Invoices with security 6 3 To commence Invoice fraud is a major means of features VAT evasion Manuals for different 12 10 Not envisaged procedures (except audit and investigation) Audit and investigation 12 6 Not envisaged manual I I I _ Computers and automation Design 17 14 Not complete Hardware (including net- 14 12 Not complete working) j Registration system .13 10 Not complete Other systems 13 up to 6 months Not complete after launch Staff Training Training plan 13 13 Not done Basic VAT training 12 11 for first Only completed for (officers and staff) round, ongoing selected officers. activityv Basic computer training 12 11 for first Completed for some round, ongoing staff activity Training in procedures 10 7 for first Procedures not yet (including computer round, ongoing finalized related aspects) activity Audit training 6 4 for first To be finalized round, ongoing activity Initial Registration and Return Filin Activity _ Advisory visits to large 5 4 Not planned dealers by Large Taxpayers Unit Issue applications 3 2 Planing to conmmence Issue registrations 3 1 Planning to commence Identify and pursue 2 0 Planning to defaulters commence Issue return forms and 0 1 month after Planning to VAT booklet launch, and commence ongoing _ Receive first returns I month 1 month after Planming to after launch commence launch Receive first payments I month I month after Planning to after launch cormmence launch I_I 4 Annex 3: Revenue effect of sales tax exemptions and incentives: Details Table i2: E_isat Salveme Lose se to sals TDI Cmwoelnce: i999-ii 0 and 2084 Commodiy C ea eofeU Nasul rob of axt T Inar few -f P P4 8 2644 M type of pbic p esn'b 4 13.S69 Acns sil lS __ _ _ 4 ___ 4 Tumov, sx and s.edwae exanwL_ 36 Aywvedis mwdIn plat by seay O- 8 208355 b _ y *515 8 B _ _ 0956leli - Eyas 4 8 _ _ 230133 ____s 8 13 Up b 3Du me 2h1. 24563 _ _ 2 jla_i 4291 _a ibus 4 4 Turrmverlax and s.dcase exenmt 21t66 0.Ba Saem 1 2 _1S371 C.n rTnu a 8 Trno x nd ada exempt 3255 Cien- pl equana fins etc. 12 12 Twner tax end s rge exempt 2752S Caow.Penta 8awl db o wl e B 10 __ 13424S Coniputarz 8 PiwIm, key boards, hea- --ak Sappy u. _4 13 Tunover t.x ad phap exempt 4D3SS Cookware servla ' r Bken i13 4B7 _t. seed cake 6 4 62 Drynila _ 4 12 _483 Etar-n a Tes 4 8 49 Edleo cil __4 _ Twer tax d ch exnwL 173038 Etectcal itm Faig 360V B used wit eircuA elebal 6 13 TulnorbX axnd schare exempt 4343 Ealv reng pwpir uplD 75 HP 1 13 Tw.ovw tax axad srseexewmt 93643a Eb dc goos ne, wir crrwrication i 2 13 Tw er tax rnd sdiage exewnp 36631 consaing of hand held rrcewivers, PABXOEPAB)Q Farsn lbd ve___s_ ________ 4 _ 4 Tnovertax 3urh ix8nwL 1948 Finbizers - _ ~ Tan,over tax end s.d.erse xanwt4 3731 Food Bnoralc dnsks W"fr C-1-i 4) 3 1055 Food dyes &food cel 4 13 Tumovertax and saaw exempt 13685 Greeiv cards, n vitabe ca,ds. viaing c dsee cards i 4 i3 137 Heat PFstat Abber Tenion Tape B Thln 12 13 Twmover tax nd sadew en ext700 Housahold-tnda o1 non4au ibW __"_ _ 4 Turnover tax nd Wtecag *xenmpt 2S73 bcorp or w e goods not covered by Enr C-l. 0 4 11C LactaInetar endnmSaat 4 1 t3 t3!i31 ladiehanag excgtos batter __ L ___ S676 Mechaiscel alano clocks Strne _pies 8 ! 13 7362 taaelawu Hrn_re_ntdry cA-p121 8 _3 8845 N.iact ~rorw nrsirlicbenit 12 87T4 Ptr con_sa IdaTer 4 10 2117 Petan pty, sexes 13 20 100 Pharaphic paper S6m 8 13 Tumoverbtx arW rda exenms _ 3255 PlasOc S ndb eoar W 8 8 Tunover tax nd rrge exempta up t 232051 s. 300 perparr Plbo tcgnhberfooer M = = __ _____ . _____ _8 Price not exceexing F P =IO 23205 Sd glezed dne ware prp A41 13 2048 Sprrt 8 asnn 20 20 Turnover tax and suchare exnrpt 35882 Sprntgoods &Toys exchbn crombays 4 8 __ _ _ 1477 Staple6br_ - - --ib4 Tumvertex wnd suchae exext 19559 Syrdietc piger 4 13 g507 Syntietic preious rtanes~eails. 12 12 Turnoyver tund Wchwage exeempt 10i795 Tabe Ceriry 2 12 Tunoveerxtand ucharge exenpt 10288 Tenber, Bamboo, plywood ___ ___ 13 ____ 4327 Trele for apica use -4 10 2117 TYpeg nacines, part, accessr S rbn 12 12 Turnover tax nd rge *xempt 33 Unt ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~2 491 lorfor becbo Scral rehYdrbion s e 8urrer*xernpt 8 roven sac!k: nra j any 0b r maLerie 4 Tusera ren w exerq! 4719 X-Ftayn gm 4 0 s 2484 TXby eattd 61m e._ leo bon _ _ ____ ____ 4__ _____ _ _________ _ _ la) The blsoxng priddud ne abted b be undev cnceslone dsn 200-02: FeerEb A^biren exouson, Castt rm casx, Dry b, hn macline not exceeding rs. 1 bkh | per nachine, Coeon Gamer llachlnerry, Dry Meharwnd FHoar of Crmels & pilts, Hordiare karn used by rldnt amd arfts )i The fotn exemporonare srd b be unavable hrr 2001-02 he exc grden unr SlO- , srnn used by Dan Greing card., nvaion cards, viibng cards, rwadg cards B blas crds, aa types Of plauc pipes tnd ngs, lIch lock l:) Sdide etries br ch U.viure available let netr s-rtrirs butanteda concesiwon_ rclkde AltS Inargahadral end A7S bands la. (d) llanis for erkacirhtlrn,over datara nrJrotavabla include barns undler erdis A1l, A27, A28, A3t, A32, A5331). A3tA?, A34Q3, A3A4AAS, A35, A38SA, A-M A4, A,50, A53, AS5,S A58, A59, ASS, A72, A74, A77,AS3, A92, ASS,2ASS, A9(1, 572AJ1, A9645), =sSl1AS1,AS3} 18 10 1t 13 14 15 19_ MO. ASS. p&6. A72. A74. AJT ~ ~ ~ ~ ~ ~ A36~~02),AA603),ON Al 10A3 A133A134,A3. 13 Ia) For baery prodict, and plbedc end niberbs aler wdh price not xceex g Rt 100, 30D% nrvenu las trom oncrwonel abnet is assmred 8) For ravens. es bsniatas n 2000-01. Ihe psdh a revin l asnumed b be OBwsanadob ane irmee groi rn Bbay sre tax rrveue ia 14 082%. This at eSa Ihe prc;ected erhi byit_re r fc 20t0 () Fon.ae used (except speced cass): For d connodte s taae * 10% is due for dealers wih b,x befre sachawge above Rs 1 bla.. Using dab on ax due by .m of deelam.iis mensreatsoltge coD cfrneno.ttorornd 9.7596 aaxes. Soisit used krcnm odbsef cnesbnatx anly: ruevr. less sT^1.0375r*t. raa lit taxable tmover.t-s ie bnxnl txrateand c istie cncIo lax rate.eteroverbx nd x ge are ralso exenpLt wlb used is Tlt 0975Sx-cL r,ee x = O.t is ie t1unovw tax rM. Dat Source Sales Tax Depa4rent. Whai. 5 Table A3: Package Scheme of Incentives (Rs crore) Scheme Certificates of EntiWement Issued Monetary Ceiling on the amount Amount availed of by Balance to be availed (up to 31.32001) - (Numbers) of sales tax Incentive 31.03.2001 (up to 31.32001) Examption Deferral Exemption Deferral Exemption Defera Exemption Defrl 1979 SS] 3219 157 192 39 180 28 12 10 LSIMS 46 65 204 99 127 70 77 29 1983 SSI 3155 1132 657 193 596 149 60 43 LSMS 290 155 3551 497 3069 380 402 117 1988 SSI 2791 1848 1003 1899 633 12047 369 691 LS/MS 582 369 7739 3477 2488 2679 5250 797 1993 SSI 2828 1421 3756 1824 1391 1002 1364 21 LSIMS 393 300 11487 2348 2605 1982 8881 366 TOTAL 13304 5457 27592 9578 11093 7501 16499 2076 Source: Maharashra Sales Tax Depwtment Table A4: Average Impact of Package Schemes on Receipts (as on 1.42000) (Rs Lakh) Year Total ExemptIons Total Deferrals Total Revenue Loss from Package Scheme Actual 1989-1990 35.38 8499.99 8535.37 1990-1991 739.76 8230.93 8970.69 1991-1992 3843.7 8230.93 12074.63 1992-1993 8198.78 6895.54 15094.32 1993-1994 24916.71 10236.05 35152.76 1994-1995 47216.36 17589.34 64805.7 1995-1996 87421.65 34560.91 121982.56 1996-1997 115566.67 39094.9 154661.57 1997-1998 102400.61 55755.84 158156.45 1998-1999 148842.91 60739.38 209582.29 1999-2000 155828.01 71474.95 227302.96 Foracast 2000-2001 149109.88 67556.77 216666.65 2001-2002 142724.27 64238.94 206963.21 2002-2003 136759.99 56683.25 193443.24 2003-2004 118930.83 47419.3 166350.13 2004-2005 106798.46 38525.36 145323.82 2005-2006 96011.88 11186.93 107198.81 2006-2007 79304.68 9753.89 89058.57 2007-2008 53482.83 7758.49 61241.32 2008-2009 48871.57 7086.32 55957.89 Soume: Maharashtra Sales Tax Department 6 Annex 4: Other sources of own revenue in Maharashtra Other levies by the Sales Tax Department The purchase tax on sugarcane is collected by sugarcane using factories at a specific rate. A separate rate is prescribed for small scale "khandsari" units. The tax exists because sugar is one of the three AED goods. Furthermore, a sales tax which will be difficult to administer, as farmers selling sugarcane would have to collect the sales tax. Nevertheless, the revenue productivity of this tax has been unsatisfactory due, as discussed, to large collection arrears. Exemptions granted to sugarcane producers also need to be reviewed and rationalized. This, along with the defunct agricultural income tax are politically sensitive levies of great potential whose revenue shares have been falling continuously due to arrears problems and non revision of rates. Minor levies also exist on luxury hotels and on tobacconists. These should be merged with the VAT when AED goods are restored to states. Non-tax revenues: Interest receipts and dividends 46% to 80% of interest receipts in state accounts are made up of a contra entry for the imputed return to irrigation works. Loans and advances are largely to Departmental undertakings, public sector units, cooperatives. Loans are also given to employees. Effective interest recovery rates on loans and advances in most states tend to be low partly due to arrears. Similar low returns are to be found with respect to State govemment investments. While further details are not available at this point', improved recovery of loans and advances and interest and disinvestments of unproductive equity appears to hold out potential to improve non-tax revenue performance. A review of rates of return to loans and investments by the Government is, therefore, suggested. Non-tax revenues: Mines and mineral royalties Mineral royalties currently contribute around Rs 100 crore to the state exchequer. They accrue in the form of fees for the grant of mining concessions and via specific royalties per unit weight or volume of mining output. -Major minerals, which contribute the bulk of mineral royalties in Maharashtra have rates set by the Centre. Though royalty rates are supposed to be revised every 3 years, these have not been revised since 1994 for coal (80% of mineral revenue in India is from coal). Rates vary with the grade of coal and are around Rs 75 per metric tonne for coal and Rs 40/tonne for limestone. The Centre is reportedly considering conversion of coal rates to ad valorem rates, but these present problems of evasion through mis-classification and price variation with minerals like coal which have multiple grades. Minor minerals include limestone slabs, granite, road metal and ballast. These royalty rates (or seignorage fees) are fixed locally. Minor minerals, which are largely exploited by the unorganized sector, presenting collection problems in addition to problems from pilferage and violation of environmental restrictions. For non-working mines, "dead rents" are collected. ' Data, on request from the Government of Maharashtra, are yet to be made available. 7 Annex 5: Key institutions for effective tax administration (a) Clarity of goals, perfornance monitoring and long range planning For proper planning of administrative activity, the first step for each tax department is clarity of goals and of future directions. Mission statements reflect basic performance measures of any tax raising department, namely EFFECTIVENESS (or the extent to which taxes are collected relative to potential collections as allowed by law) and EFFICIENCY (or the cost to both government and taxpayers of collecting taxes). Citizen's Charters reflect one important aspect of efficiency, namely taxpayer costs (including convenience and time costs) in paying taxes and complying with administrative requirements. Mission statements should then be translated into largely numerical, monitorable indicators of performance,2 while Vision statements should be translated into written modernization and development planning documents. Modernization plans should cover manpower, infrastructure, e- governance and have sections on each major activity of the department (assessment, registration, appeals, road checks, production monitoring, issue of licenses and permits, etc.). Further the impact of modernization plans should be specified in terms of targeted improvement in current performance indicators. Performance indicators and progress in achieving modernization plans should be reflected in (a) Annual activity plans for the year to be specified at the beginning of the year and (b) Annual Performance Reports of departments to the legislature and public. (b) Citizens feedback and participation Two aspects of performance monitoring deserve to be highlighted .The first is citizen's costs. To ensure information on this, institutionalized feedback on every substantive citizen-tax department interaction is necessary. This can be done via a simple tear-off post-card provided in every case of interaction between citizens and officials (applications for licenses/permits/clearances/registration of dealers or documents /photocopies of deeds/encumbrance certificates, checks at check-posts and by mobile squads, scrutiny assessments, etc). The second aspect is corruption and anti-corruption actions. Corruption and anti-corruption (e.g. vigilance) actions are currently not reflected in departmental annual reports. Regarding citizen's participation, committees of taxpayers exist to provide feed back and make suggestions for service improvement. Again, the deliberations and suggestions of these committees find no place in Annual Reports. (c) Budgetaryflexibility and expenditure control * Capital allocations should be based on long range plans which currently do not exist and form a part of medium term expenditure planning. This is not currently done. * In the medium term, budget allocations of tax departments should be linked to their revenue and citizen's service performance vial measurable indicators. (d) External audit and vigilance Financial audit (by the AG's office) and effective vigilance operations are the basic institutions to externally vet performance and non-performance of duties, including corruption. (e) Individual accountability and performance assessment Departments are at the start of computerization. Once automation improves, it will be possible to track the work efficiency of individual employees via computer data-bases. For example, the quantity, outcome, and time taken for inspections, scrutiny assessments, vehicle checks could be 2 Performance indicators for different activities and for individual staff have been introduced in the Conimercial Taxes Department in Andhra Pradesh. 8 tracked through staff numbers of employees. When this is done, the current opaque and arbitrary system of Annual Confidential Reports should be replaced by open, transparent, numerical performance marking relative to beginning of year targets for all staff. The process of setting beginning of year targets will itself require to be devised in consultation with staff so as to minimize opposition.3 (d) Management information systems on the effectiveness of enforcement activities From information monitored by tax departments the effectiveness of department manpower in curbing taxpayer non-compliance and other violations is difficult to assess. However, basic data compiled can be a used successfully to arrive at management guidelines. For example, the five monthly reporting forms used to monitor field units in the Sales Tax Department provide a adequate management control information on major business processes. (e) Annual reporting ofperformance The general goal of a tax administering department should be "to collect taxes legally due by providing taxpayer education, assistance and compliance enforcement at minimum social cost". However, major departments, including Excise, Stamps and Registration, Transport and Mines and Minerals also have adjunct citizen's service and/or regulatory objectives. The implied performance measures are: (a) EFFECTIVENESS: Reflected, negatively to tax and regulatory non-compliance and tax evasion, workload and collection arrears. Silvani's Tax Gap decomposition is a useful framework for perfornance monitoring for non-compliance: (1-G) = (1).(1-F).(l-U).(1-C), where I = taxpayer Identification Gap, F = Filing Gap (in case there are reporting requirements), U = Under-reporting Gap (reflecting non-compliance/evasion by tax return filers) and C = Collection Gap (reflecting tax collection arrears). G is then the overall Tax Gap. (b) EFFICIENCY: has 3 measurable components: (i) The resource cost of tax administration - reflected in budgetary expenditure; (ii) resources expended on tax administration by rest of government (including of the Finance Department, PWD, police, Law Department and tribunals, AG's office, etc), and (iii) the compliance cost of taxpayers and third parties.4 Annual reports of tax administrations should focus on "half-empty" not "half-full" - "outcomes not outputs; outputs not inputs". In other words achievement relative to the estimated magnitude of the problem NOT on growth rates per se. Reports should provide information on: * Mission and Vision statements (not devised) * Brief position of staff strength (present in current annual reports), physical resources and infrastructure (not present), organisation chart (present) and functions of divisions (not present). * Recruitment, promotions and transfers (not present). * Achievements against action plan for the year overall and by major activities (present in some cases). * Manpower improvement activities (training) and infrastructure upgrading with costs (occasionally present but without cost details). * Targets for the year against revenue collected (present) and administrative expenditure (only direct budgetary costs). 3 Such a system was introduced in 2001 in the Andhra Pradesh Commercial Taxes Department. 4Other economic costs which cannot be measured accurately except by special economic studies include the cost in terms of reduced economic efficiency and violations of taxpayer equity. 9 * Effectiveness indicators relative to targets in terms of revenue effects for each activity and program (not present). Workload and efficiency (i.e. cost-revenue ratios) indicators (not provided, workload and collection arrears provide partial coverage). * Results of taxpayer feedback on quality and timeliness of services and corruption encountered, external (AG) audit, vigilance and parliamentary review (not provided). * Targets for the next year (not provided). * Administrative reforms planned next year and in future (not provided). * Multi-year information where possible - for MIS and research putposes (provided in some cases). 10 Annex 6: Proposed system for RE, BE and MTFRP estimation * Preliminary projections should be based on prescribed statistical projection models. o Preliminary BE and medium term projections can be done either in the Finance Department or in the respective revenue Departments. o Preliminary RE projections can be done according to a spreadsheet model provided to them in the respective revenue Departments. * Model projections may be modified by concerned Departments with reasons and calculations beinz provided. * Preliminary BE and MTFRP targets may be supplied by the Finance Department if greater revenue effort is required than provided by projections. * For BE and MTFRP, ARM proposals to make good projected shortfalls (both for revenue structure and for administrative measures) and their cost and revenue effects may be worked out in separate worksheets and their revenue effect added to projections. o These are to be supplied by respective revenue Departments. * Reasons of shortfall/excess in previous year projections may also be supplied by respective revenue Depts. * Simultaneously, Departmental expenditure projections may be calculated and revised firstly by respective Depts. and then by the Finance Department. e Projection models for the current year o For RE projections, monthly collections inflated by average collection percentages in previous years and then modified, with reasons, by respective Departments, is proposed. A spreadsheet for this will be developed. o For initial BE and MTFRP projections, a buoyancy based model is proposed. O Projection models may be updated periodically using academic input. * The system, including allocation of responsibilities, may be reviewed once actual (AG) revenue and expenditure data for the year are provided. Suggested Proforma for BE and MTFRP Exercise by Revenue Departments 1. Worksheet for Cost-Benefit Analysis of Reform Proposals in the MTFRP Department: Worksheet No _ of (ONE WORKSHEET SHOULD BE MADE OUT FOR EACH REFORM/ARM PROPOSAL, INCLUDING ADMINISTRATIVE REFORMS) 1 .Activity 2. Existing position 3. Problems 4. Description of proposed reform Physical aspects Financial aspects 5.Projected 5 year 2002-03 2003-04 2004-05 2005-06 For years after 2005- Cash Flows (Rs Crore) 06 Revenues Rs cr OR % growth over previous year for years Costs Rs cr OR _____ % growth over previous year for years Net Cash Flows Rs cr OR - % growth over previous year for years 6. Assumptions and method of computation of cash flows* 7. Other costs and benefits (please describe) 2. BE and MTFRP Worksheet Name of Department: Sales Tax Transport Stamps and Registration State Excise Particulars Rupees in Crores for the respective financial years Reference to detailed (rounded) worksheet page numbers/Remarks 2001-02 2002-03 2003-04 2004-05 2005-06 GSDP projection 304006 337447 374566 415768 461503? Supplied by Finance Dept 1.1 Tax projection as per buoyancy model 1.2: 1.1 as a percentage of GSDP 2 Preliminary MTFRP Supplied by Finance projection Dept 3. Projected shortfall from Calculations to be MTFRP as per department explained by Dept in calculations (negative Annex I figures in parentheses) _ 4 ARM effect of proposed reforms to make up shortfall (from 8) _ 5 1 Final MTFR.P projection (2-3+4) 5!2 5.1 as a % of GSDP _ 6. 1 Dept expenditure Supplied by Finance projection with normal Dept g row th__ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ 6.2 Additional costs/cost Calculations to be saving due to propose d explained by Dept in reforms _ nnex I 6.3 Finance Dept By Finance Dept adjustment with reasons in _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ A nnex 2 6.4 Total expenditure (6.1 plus 6.2 less 6.3) _ 65 6.4 as a % of 5.1 _ 7. Net cash flows from Reform/ARM proposals (Froni Worksheets) 7.1 1 1 1 1 12 7.2 i _ | l 7.3 Ietc I 8. TOTAL ARM Suggested Buoyancies for use in 1.1 (based on recent performance): (a) Stamp Duties and Registration Fees: 1.372 (b) Professions tax: 1.097. (c) Sales tax/VAT: 0.912 (d) Other commercial taxes: 0.605 (e) State Excise Duties: 0.858 (f) Motor Vehicles Tax: 0.865 Projection Method: R f ProjectedGSDP Buoyancy Re venue for Year (BE) I Pr evious Year RE. [previous year GSDP 3. Assessment of reform proposals in 2001-02 (In Rs Crore) Description Cost Actual Revenu Actual Reasons for excess/shortfall in of Activity Projecte Cost by e Collection by costs/revenues d in BE end- Projecte end- 2001-02 December d in BE December 2001 2001-02 2001 1. 3 etc 4. Feedback Form 1. Name of Dept: 2. Time taken to complete MTFF exercise: 2.1 Time spent by Commissioner and Additional Commissioners: 2.2 Time spent by other staff: 3. Estimated expenditure on MTFF exercise: 4. Suggestions for improvement of pro forma: 5. Other comments and suggestions: 13 Annex 7: Suggestions for Integrated Check Posts Check-posts can be at the state border or internal. Besides forest and mines & minerals check- posts, internal check-posts impede trade and should be avoided except for special circumstances such as at the intersection of inter-state highways. An ntegrated check-post location and mobile squad deployment plan needs to be worked out initially, by joint consultation of concerned Departments. Given the imminent introduction of the VAT, checking of both incoming vehicles (to monitor imports of inputs) and outgoing vehicles (to verify export claims, given zero-rating) will be needed at border check-posts. Consequently, agreements with bordering states to undertake checking on behalf of Maharashtra and share infonnation, in any one direction on a fee-for- service basis should be explored. For border check-posts, integrated checking procedures and information sharing arrangements will need workeing out. To Improve cost recovery and citizen's convenience, value added service facilities, such as food and beverage services, toilets and baths, retiring rooms, internet and telephone services, tourism and road repair services, etc. should be built into the check-post designs, at least for major check-posts. These services can be utilized by both commercial and non-commercial vehicles. Some of these services can be out-sourced for fixed terms, via open bidding, to private sector contractors. For mobile squads, modern communications equipment is important. More important, however, is deployment based on effective intelligence rather than only random checks which cause haiassment and open up scope for corruption. This, in turn requires strengthening of intelligence gathering resources and training of tax departments. 14 Annex 8: Excise enforcement and administration The structure of excise administration Physical control of liquor production, transportation and dispatch are perhaps inevitable in excise duty administration. The Department has two broad divisions. Stationary staff posted at distilleries and mobile staff who check adherence (e.g. of timings) followed by licensed wholesale and retail outlets and who conduct enforcement searches and detection of illicit liquor. Mobile staff also man a system of six border check posts to control liquor smuggling. In addition there is one flying squad per district and one additional central flying staff, chiefly used to check licensing abuse. The total sanctioned staff strength is around 4000 though nearly 25% of posts are vacant. Regarding the system for monitoring alcohol production and diversion in distilleries, there is an elaborate system of daily monitoring via e-mailed reports on revenue receipts, production dispatch, molasses yields, storage and transport passes issued. This is compared to conversion norms (input-output ratios) from raw alcohol to bottled beverages. The system for data collection is planned to be upgraded via flow meters and electronic communication of production data. However, by undertaking cross-distillery and cross time analysis of molasses, water and electricity consumption (inputs) to alcohol production (output), risk profiling of distilleries can be carried out to improve evasion control as also collusion between producers and excise staff. For wholesalers, there is a system of monthly reports. Retail sales data are collected but the information base is incomplete. Field investigations and enforcement, by uniformed excise staff, are an important part of its duties. Part of the reason for continuing non-compliance is because of existing staff being below the sanctioned strength and due to shortage of vehicles and equipment, including communications equipment (e.g. cellular phones). By and large, detection of illicit liquor relies on informnants' information, and a scheme of rewards exists for informants. The current low ceiling on rewards (Rs 500) is under review. Further problems of excise administration Country liquor was promoted by the government of Maharashtra to counter illicit and harmful toxic brews popularly known as 'hatbhatti'. It was believed that cheaper and safer liquor would effectively counter (if not eliminate) the menace of hatbhatti. However, newspaper reports and other sources confirm that 'hatbhatti' production and sale has not diminished. It has, instead, been able to withstand competition from legal alcoholic beverages. Country liquor bottle of 180 ML, is usually sold at Rs. 15 to 16, compared to hatbhatti availability at Rs. 3 to 4. Hatbhatti contain many impurities giving consumers a quick 'kick' even at lower proof value. A recent move by the government to introduce country liquor of lower proof value (60 under proof) could not compete with hatbhatti, and has now been withdrawn. Making of hatbhatti is politically supported and the police have generally been extremely ineffective in controlling it. The Excise Department does not have enough staff to control hatbhatti. It has been suggested that making brewing of hatbhatti a non-bailable crime, as with narcotics, will deter it to some extent. As the stale government is generally unwilling to issue new licenses for country liquor retailing (CL- III), it could, less controversially, issue retail licenses for CL-I holders. This has been earlier done in the case of FL-I license holders (IMFL producers). Cl-I holders would, in turn, be able to offer these locenses to potential CL-HI applicants. There are currently 39 CL-I holders. If all are allowed outlets in each of the 32 districts, this will increase the number of retail outlets significantly. 15 Annex 9: Molasses Recovery from Distilleries in Maharashtra Table A5: Molasses Recovery from DIsUlIleres In Maharsshtra DbtOliy 2000-2001 1I992000 1998-1999 Alcohol Prduction PlMh Lb1 Moiasses/Akohol rwery Acohol Producton LilossesA hol retovery AbDhol Phodudon MoiassesAlcoohol (MTA.tj (bakh Lr) (MTAJII (L akh i Mcnevy (MTAii Co.operrlve Sugar Factorhs SaFudaTai Pariw 53.03 M2247 20.32 2223 33.17 21Z2 Rahud S.S.KilW 91.36 248.(4 66.91 233.69 67.74 231.56 Shdram S S.Kild 49.48 248 51 26.63 238 96 27 09 228 32 SahalarMahashiShankrrao 189.04 249.8 1571 228.2 102.31 2218 ShanlkarS.S.KiLW 81.31 253.1 53.12 24Z51 43.51 236A7 Manjam S.SKLd 6Z33 253.8 44.15 263.3 91 232 7 SiddheshwarS.S.K.Ld 34.89 263.7 41.91 2482 19.29 241.6 Tuljabhavani Shr.4kad 27.21 266.21 29.74 256A 12.54 251 02 PadmashreDr.VikhePaW 170.49 266.6 11Z81 23Z67 144.08 248.17 Kumbhi KasadS.S.KlUd 51.11 272Z8 5348 276.1 46.47 26Z5 Jai Bhavani S.S.Kld 51.34 281 47 40.15 276.65 33.09 258.36 Shdgonda SS.KLd 40.95 236.4 43.56 2245 Marganga S.S.KUd 63.1 264.5 56.35 247 RaSuppanna Kuibhar 40.95 230 36.26 203.05 Terra Shetkari S.S.KiLd 70.03 231.6 67 229.9 37.89 227.2 Vasantada ShekaiS S.KUld 93.81 233.4 106 234A 5812 238.3 Kanrm er Kia haheb Wagh 22.82 239.9 21 245 17.7 249 9 DnyanshwarS.S.K.W 974 243.2 10168 236.7 51.91 235.7 Bhogavdi SS.KUid 3Z3 2485 29.1 254.7 28.06 259.4 SangamnerBhagS.SK.Lk 115 249.57 99 248.02 112 249.12 TalyasahebKore Warana 57 255.1 68.29 255.7 5181 2481 Kopagaon &S.KLd 80 86 256 71.95 253 76.44 247 Gaohingia S S.KLd 45.45 258 98 31.72 251.74 33.59 252.02 MulaS.SKLd 60.74 262.35 5Z79 2703 45.18 2597 GaneshS.S.Ktd 50.63 26837 4964 265.18 4.22 261.91 GaNapurS.S.KUld 33.78 270 2271 269.8 11.1 270 RaaranBapu Pagl S.S.KiLd 223,47 270.4 156.63 264.37 141.37 266.89 AshokS.S.Kld 65.35 27ZO1 40.95 271.47 38.53 272.42 Shd Data Shetkad S.S.KiLd 97 7 273 86.38 274.1 79.82 267.3 YashwantS.S.KLtd 67.13 273 58.27 275 48 38 274 Sanjvani S SKUd (Takaih 244.47 273.37 234.37 266.65 230.65 267.9 SararthaS.S.KUld 65.27 275.91 46.05 270.1 34.93 26944 AjinkyataraSSKUld 69.54 27853 66.12 280.59 51.27 280.5 Sahyadd S.S.KLU 95.6 278.7 111.03 275.2 74.85 272.9 Malegaon S.S.KLd 126A 261.03 73.25 252.15 KuishnaS S.KLit 131 261.89 98 254.69 MadhukarS.S.Kild 60.5 2543 4782 2554 i6saimeer Satara S.S.KLd 34.3 279 33.9 277.2 Puma S.S.KLd 18.33 274 20.73 278 NiphaSSKLlW 88.81 237 66.5 2312 Daulat Shelad S.S.Kild 53.38 257.6 49.37 277.9 SidheshwarS.SK.i-ld 2825.62 41.96 234.2 AVERAGE 82.09 259.3 134.55 255.28 55.57 250.7 Prite Owners Oiswlsrlu AshokAlooChem ld 111.55 263.24 115.3 259.62 96.67 25349 SomayyaOgano Chmcas Ltd 211.08 227 195.89 227 Pashidmh MaharashbraVdas 401 226.2 Tilak Distiteris & hIdusties LId 1Z99 222.5 2179 223.2 Vaibhav Linkrs Pvt Ld 63.67 250 35 93 251 25 250 AVERAGE 82.43 259.17 191.01 253.93 57.73 249.14 Data Source Sakhrby, 2001.02. iohlaXour Alt Narade Pubications 16 Annex 10: Improving property right protection and property valuation in Maharashtra The S&R Departments Torrens System experiment The S&R department is in the process of designing an innovative pilot experiment for improving protection of property rights via the introduction of the Torrens system, which is a system prevalent in other countries, such as Australia, some states in the USA, and in Thailand under which registration provides recognition of rights and property title. A prerequisite for successful transition is effective coordination between Land Record, Land Revenue and S&R Departments with, importantly, computerisation linking of data bases. The experiment, to be piloted in 10 villages in Pune district, will provide a single document to property holders with a demarcated map and property title. If successful, this experiment is of immense importance for property rights protection in India. Property valuation in Maharashtra's S&R Department. The Joint Director in charge of valuation is aided by the Divisional Deputy Director, Mumbai, Assistant Directors from divisional offices, and officers from Town Planning Department at divisional level. Data on market rates of property values are compiled from local enquiries, "higher value" transactions registered with the department, and advertisements in the newspapers. At the divisional level, consultations are regularly held involving the Joint District Registrar, Sub- registrars, Town Planning Officers, members of local bodies, local builders association and local advocates. These data are collected till October and submitted to Inspector General's office. Property values determined on this basis are published in the ready reckoner in January. The basic difficulty with the Maharashtra system is that it cannot easily ensure that market values are reflected in ready reckoner valuation. A system for market based self assessment of property values was proposed way back in 1964 by Arnold Harberger.5 While this system is untried, it's has great a priori promise. However, half-way houses are possible. For example, UP follows a similar system but biennial valuation is done by surveyors (usually retired government servants) appointed for this purpose in each area. As independent investigators they are not constrained by departmental limitations, procedures and biases. Property values thus determined are then kept open for public objection for a certain period before being adopted. If objections are made, formal, open hearings are held by District Magistrates. The UP system may provide for a better link of reckoner prices with market values. 5 The proposal is reviewed and detailed implementation proposals are in two papers by J. Strasma in the Bulletinfor International Fiscal Documentation, 1965. 17 Annex 11: Additional issues in motor vehicles taxation Passenger transport system objectives and role The objective of the transport system is to provide low (time and money) cost, safe and comfortable connections between passenger origin-destination pairs at the lowest possible resource cost to society. Time costs include waiting and traveling time and uncertainty associated with punctuality and reliability. In providing for services there is a trade-off between monetary cost on the one hand and comfort, timeliness and reliability on the other; and between safety on the one hand and punctuality and reliability on the other. To achieve this objective transport services should be provided through a mix of modes, including rail, road, water and air services. Within road services a mix of public transport vehicles of different sizes and private vehicles will best accord with consumer preferences. As with other goods and services, passenger transportation should contribute its share of indirect taxes to the exchequer, the tax rates being dependent on efficiency, equity, extent of usage of roads and environmental considerations. Transport Department objectives and organization Major areas of regulation by the transport department are: * Registration and renewal of registration of vehicles * Roadworthiness certification * Pollution certification and checking * Driver testing and licensing * Road inspections to ensure road and passenger safety including no over-crowding, no plying on unauthorized routes, no unauthorized stopping to pick up passengers, and no overloading; ensuring that unauthorized vehicles (goods carriages) do not carry passengers * Issuing of permits to passenger vehicles to ply on specific routes, and to goods carriages. Tax collection, service provision and enforcement is done through a network of 38 Regional Transport Officers (RTOs) and Deputy RTOs, 16 border check posts and 36 on-road mobile ("flying") squads. Citizen's services The level of citizen's services provided at Regional Transport Offices (RTOs) is capable of improvement, despite recent computerization of 7 RTOs. A Citizen's Charter and a system of monitoring of compliance with norms in the citizen's charter, together with improved physical facilities for the public can be suggested. Institution of citizen's feedback forms is also recommended. Costs of these services can be recovered directly from citizens through enhanced fees.6 An alternative that may be considered is out-sourcing of RTOs to private agencies on a "Automate-Operate-Transfer" basis as is being contemplated in Andhra Pradesh. Planned improvements in the quality of driver's licenses tlhrough computer readable smart cards, to be outsourced to a private firm, are an initial and corrmendable step. 6 Though basic fees for services are set under the Indian Motor Vehicles Act, there is no restriction on additional, optional, levies for faster or better quality services as are levied, for example, in Andhra Pradesh. 18 Box A2: Improving Transport Department service delivery to citizens in Andhra Pradesh The Transport Department's FAST (Fully Autorated Service of the Transport Department) is largely oriented towards improving customer service. Piloted at the Secunderabad RTO, the pilot went on-line in May, 2000. The system includes a touch screen kiosk for information and procedures, and automated production of licenses and permits. Information and forms are also available on the Departmenfs website (www.aptransport.org). The main use of the data-base is to check the status of taxes due before issue or renewal of permits. The system is to be extended in stages to the other 37 RTOs. To network data bases PriceWaterhouseCoopers has been engaged by the Government of Andhra Pradesh . The increased taxpayer service orientation has been incorporated in a recently released Citizen's Charter, which covers both manual and computerised services. Performance benchmarks are to be laid down for the automated system and monitored. Motor Vehicles tax rates Motor vehicles taxes have two broad divisions. The first is for light vehicles that are privately owned. These are required to pay an ad valorem purchase or "life time" tax on registration following purchase or import into the state. The rates are 7% for 2 and 3 wheeled vehicles and 4% for 4 wheelers. Commercial vehicles are taxed on quarterly or annual basis, with goods vehicles having an option to pay a one-time tax equal to 7 times the annual tax. Rates are fixed per vehicle for smaller vehicles, on a per seat basis for buses and on the basis of "gross vehicle weight" for trucks. However, as an administrative convenience, the Maharashtra State Road Transport Corporation (MSRTC) pays tax at 17.5% on its "fare box collection" (passenger tax) plus Rs 71 per seat per year (motor vehicles tax). There is also a tax on motor vehicle dealers at Rs 200 per vehicle per year. Concessions are limited to schools, ambulances, charitable trusts and agricultural tractors. Penalties for regulatory offenses are in line with or higher than in other states so no immediate examination is needed. Existing rates for commercial, passenger, vehicles are by and large in line with other states in the southern half of India. However, rates for individually owned vehicles and goods carriages can be revised upward. Furthermore, the state may wish to consider an environmental cum user charge levy for old vehicles. Specific suggestions are in Table A22. Whether rate changes should be done in 2003-04 or after one more year will depend on unfolding economic conditions in the transport sector, which is currently depressed. Automatic revision of specific levies in line with inflation, a general recommendation made in the main text, applies to both motor vehicle taxes and penalties. Table A6: Existng and Suggested Tax Rates on Motor Vehices Vehide dass Maximum in Southem States and UTs Maharashtra Reform suggeston for 2002-03 2-3 wheelrs 7% of vehide cost subject to loor. letirn 7% of vehicle cost lfeirne tax EsWlish floor rate of Rs 2000. Additional equal levy tax (AP) for 12 yr old vehides Cars 1.64% to 3.4% of vehide cost depending 3.5% of vehide cost lifetime tax Double rate for non-indivduals. Additonal equal levy on vehide weight lifetime tax. Double for for 12 yr dd vehicles non-individuals (TN) Goods vehides Rs 2500 perqtrfor vehicles with glw of GLWof 16500 kg: Rs 9360 pa Increase to Rs 11,000 pa and Rs 77,000 one bme. 162000 kg Option of Rs 65520 onetirne. Additional equal one ime lwyfor 12 yrold vehicles opting for one time on purchase Rs 3790 pa for fight bucks. Option of Rs 26530 one fime All other vehicles Various quartedy rates linked to capacity Annual or quarterly rates linked to Additonal levy equal to 7 times annual tax for 12 yea capacity old vehicls Note: For the proposed 12 year levy, instalmrents may be allowed for 2 transition years Source: Transport Departlnent Maharashtra and Government of Karnataka 7 Since 2001, 5.5% is returned to MSRTC as a capital loan at a low 6% interest per annum. 19 Overall, the system of motor vehicle taxation appears to be capable of further rationalisation, which should also enhance revenue productivity. Since, ultimately, these taxes embody road user charges, environmental levies and congestion controls, rationalization should, in principle, reflect these objectives, given administrative considerations. After estimating tax rates for different classes of vehicles needed to serve each of these objectives, the Karnataka Tax Reforms Commission (2002)8, concluded that (a) Karnataka rates, broadly similar to Maharashtra's rates, reflected road damage charges and that (b) other objectives were best served by alternate fiscal and non-fiscal instruments to be used in tandem with motor vehicle laxes. 8 See the Government of Karnataka (2002) Final Report of the Tax Reforms Commission, Bangalore: Finance Department, Government of Karnataka. ST'LATIS TICAL APPENDIX 21 Table A1.1 Maharashtra: Gross State Domestic Product at Factor Cost by Industry of Origin (Re. billion at current prices) 19900 1991-.92 M2-93 1993.04 1994-95 1995-96 1999-97 i997-9S 199649 1999-00 20901 (P) (P) (P) (P) (PR) Agricubluro andAilled 134.9 135.04 188.38 22097 247.80 276.54 4s928 304.57 38035 379.88 331.99 Agrkiuture 118.97 120.09 170.88 2oz65 227.01 25Z61 320.42 274.58 35160 348.51 29646 Fostry & Logirng 1Z51 11.51 z79 13.03 15.41 16.26 18.23 19.63 19.48 21.87 26.27 Fishri 1`1132 3.44 4.68 529 5.38 7.67 10.63 10.36 9.27 950 9.26 Indusly 238.9 266.0 320.45 3785 431.51 41.95 598.99 700.68 677.38 77928 859.78 MIng A OuarrIng 5.75 5.80 8.03 7.52 8.76 10.31 15.70 20.58 17.93 19.43 19.94 Manufntsrlsg 18330 200.74 239.90 284.70 323.21 413.46 451.74 528.24 487.99 571 79 663.43 PRegsted 134.60 144.52 167.33 193.54 217.59 283.85 30878 355.93 347.79 401.60 441.04 Llnrgistesrd 48.70 56.22 7zs2 91.16 105.62 129.61 14Z96 17Z31 140.20 170.19 222.39 Construdbn 34.10 41.68 49.15 5581 6.85 72.04 84.09 97.79 112.85 122.33 135.14 E bec ricty.GasandWaterSuppy 15.14 18.18 23.36 30.82 36.69 46.14 47.46 54.05 5861 65.73 41.27 Sevcs 299.91 36138 431.60 533.3 621.42 759.70 824.88 940.79 1073.74 1254.94 1390.95 Trnsporl.StDrage&Conrunication 48.10 59.91 71.09 8.52 106.39 124.52 145.93 175.12 186.99 198.57 21992 Raibas 7.12 8.21 8.93 10.10 11.42 12.35 15.16 14.75 14.31 15.84 17.01 Transporltby OrrMeans 29.69 3659 44.68 5z97 64.54 75.98 86.19 103.22 111.74 121.32 130.51 Cwmiunkatbn 11.29 15.11 17.48 24.45 30.43 36.19 4459 5714 60.95 6141 7Z40 Trade, oels and Restaursua 84s41 91.28 110.65 128.83 151.04 192.72 228.82 268.47 266.93 297.07 340.45 Bashng & lnsurance 53.13 79.37 98.20 148.37 17383 223.41 19393 20593 258.22 309.46 34341 Rea Eslta Ownership of Dwelngs and Busess ServAes 50.33 58.14 61.00 86.56 74.72 83.20 94.66 100 69 133.16 153.36 16B.12 Pub8cAdninisshatjn 2487 28.08 35.00 38.81 44.72 53.33 6o09 7631 82.69 121.79 124.35 Other Services 3.06 46.60 55.66 63.30 70.72 82.51 99.44 114.26 14574 174.70 194.70 Gron Stab Dometc Produd 672.70 762J2 940.41 113320 1308.73 1578.19 177t3.15 1948.02 2131A7 241418 258272 Popdan (miOan) 78.94 80.56 82.22 83.91 85.63 87.39 89.19 91.02 92.89 34 80 96.75 Per Capb GSDP 323.03 94688.93 11438.30 13505.4 15189.85 18058.74 19MOA07 21379.83 2294534 25464.28 26694.15 G DP G nwth Ret 13A% 23.3% 20.5% 14.8% 21.3% 124% 9.7% 9.5% 13.3% 7.0% (P) provisional (PR): Premfimbsy Suce: GSDP - GnM, Departnent of Eronrewa & Sta8tlFs; Polulalin - GdI, Regitrar General & Census CommissiDner, Census of India 2001 22 TabIs A12 Maharashtra: Gross State Domestic Product at Factor Cost by Industry of Odgin (Ras billion at constant 93-94 pnces) 199041 1991-92 1992493 1993-94 1994-95 1995-96 199647 199748 199W-99 199940 2000M (P) (P) (P) (P) (PR) Aguiculture and AOlied 187.65 15428 208.51 220.97 217A3 227.15 26923 21428 238A0 24220 211120 Agrwfture 167.39 13402 187.57 20Z65 199.15 20657 246.60 193.16 210.96 222.96 192.81 Forestry&Logging 15.61 15.67 15.02 13.03 13.70 1383 14.06 1355 12.30 12.41 11.96 FWslsng 4.65 4.59 5.92 5.29 4.58 6.75 8.57 7.57 7.14 6.83 643 industry 320.58 322.26 347.82 370.85 387.97 447.72 469.30 524.59 50469 582.16 593.94 Mining & QuaTyrng 9.16 853 9.65 7.52 7.94 9.06 10.12 11.53 11.16 1Z27 13.22 Manuatuiing 236.12 234.44 25632 28470 289.98 34435 357.83 40350 376.31 428.76 45Z24 Regntred 17708 170.31 179.10 193.54 194.99 238.33 245.79 271.65 255.66 284.29 302.73 Unregistered 59.04 6413 77.21 91.16 94.99 108.02 11204 131.85 120.65 144A7 149.51 Constmuctbon 50.34 5Z07 5388 55.81 5632 56.54 61.54 67.00 73.11 79.05 87.33 ElsdIy, Gas and WaterSuppl 24.96 27.23 27.78 30.82 33.73 37.77 39.81 4Z55 44.11 4Z08 4115 Servlce 397.03 428.41 473.68 533.38 556.73 2.Bo0 636.5 6198.9 732.81 824.4 885.61 Trssport Strage&Cunirnunisstiun 72.35 74.77 80.55 8752 98.46 111,41 124.65 13981 142.08 15378 165.39 Ralways 9.43 999 9.87 10.10 10.52 11.26 13.79 13.13 13.96 15.22 16.31 TrartbyOltherwMes 43.71 44.50 4839 52.97 59.81 6703 71.09 7593 75.8B 80.63 8153 Comunnucation 19.21 20.28 22.29 24.45 28 13 33.12 39.78 50.75 52.24 57.94 67.56 Trade, Hotels and Restaurants 11Z19 10838 119.54 128.83 13103 15684 173.61 191.98 185.64 20Z31 215.95 Banlkn&Insuras 65.92 94.88 11Z38 148.37 15371 168.65 14036 144.19 18023 20Z58 210.76 Real Estate, Ownership ofDweeingsandfBusaeusSerices 60.58 62.4161 643674 6556 68.9119 720698 7643 7968 82.33 88.10 89.60 PubticAdnisstabun 33.20 33.02 3759 3881 4063 4395 46.70 53.61 51.74 73.72 72.55 OrerSecs 52.73 54.97 59.25 6330 63.99 6787 74W8 7972 90.59 10394 111.35 Gross StaleDomestlcProduct 905.27 904.95 1029.82 113320 116813 1285.67 1375.09 1427.65 1475.70 1f26.80 1870.75 Population (rmAiion) 78.94 88.56 82.22 83.91 85.63 87.39 89.19 91.02 92.89 94.0 96.75 Per Capft GSDP 1146123 11233.27 12525.75 13505.49 13571128 1482597 1541785 15686.87 158589U 17159.71 17268.3 GSDPGrowthiRate 0.0% 13.8% 10.0% Z6% 11.5% 6.1% 3a% 3.4% 1.2% 2.7% (P) Pnvisna* (PR) Premiinriy Sow . GSDP - Gout Departent of Etonornics & Statistics, Polulalion - Gol, Registrw Generad & Census Commissioner, Crensus of Inda 2001 23 Table A1.3 Statewise Headcount Poverty Ratios (%) States 1993194 (50th Round) 1999100 (55th Round) Rural Urban Rural Urban Official Official Official Estmatel a Official Estimatel a Andhra Pradesh 15.9 38.3 11.1 14.9 26.6 27.7 Assam 45.0 7.7 40.0 44.1 7.5 8.3 Bihar 58.2 34.5 44.3 49.2 32.9 33.8 Gujarat 22..2 27.9 13.2 15.4 15.6 16.0 Haryana 28.0 16.4 8.3 12.7 10.0 9.5 Hlimachal Pradesh 30.3 9.2 7.9 18.9 4.6 4.5 Kamataka 29.9 40.1 17.4 25.7 25.3 25.5 Kerala 25.8 24.6 9.4 12.6 20.3 18.7 Madhya Pradesh 40.8 48.4 37.1 36.4 38.4 37.9 Maharashtra 37.9 35.2 23.7 29.2 26.8 28.1 Orissa 49.7 41.6 48.0 47.3 42.8 41.4 Punjab 12.0 11.4 6.4 5.9 5.8 6.3 Rajasthan 26.5 30.5 13.7 19.6 19.9 22.8 Tamil Nadu 32.5 39.8 20.6 19.9 22.1 24.4 Uttar Pradesh 42.3 35.4 31.2 33.7 30.9 30.4 West Bengal 40.8 22.4 31.9 37.1 14.9 19.5 Delhi - 16.0 - - 9.4 6.5 All India 37.3 32.4 27.1 30.2 23.6 24.7 /a Official estimates for the 55th round adjusted to make them comparable with the 50th round given changes in the methodology introduced in the 55th round Source: Angus Deaton, Adjusted Indian Poverty Estimates for 1999-2000 24 TWOA2.1 maiw bwPMaExpeMiw (R bmg atmMtprim) 166*4 13152 13243 1ig44 158445 1354S 16647 1 8748 1 3 19940 2000t1 201-0 2 LiE LE L SiSm4 ac. 307 3ss7 41.18 4.31 s8o1 65sJ 7418 5871 942 111.81 ¶43.51 137.07 138,07 E* 1734 2017 231 251 3DA5 30 42.14 48.77 53.14 72.77 94.58 8794 84.40 Flh - y 4.77 6.27 ,16 G88 718 690 10.04 10.S7 1118 1355 15.95 1657 17S9 W&W SS b t &ffZG Wd R' 2.7 13 236 238 234 330 466 689 7.13 7.13 8,30 7.93 772 H4mbz & Iea DW4qmrt 1.81 217 267 2.07 2.9 425 MA4 418 416 5.4 613 8.10 US5 w dSC(,0STuI 6O 139 1.78 Z16 2S2 2.7s 375 318 5.13 538 6,03 710 6.87 6.65 L dbcpj wd LoWi Wa%m 018 0.68 017 0878 1.4 137 1.47 198 119 2.42 Z13 1.98 118 So *dS4y8uuyda&b*UN l 11O 182 223 230 318 311 318 411 554 356 7.69 627 .11 o6a 1A41 130 124 134 2zs 314 410 3.71 4.62 1.u 1.69 1.40 221 Z1 EtnwieSuvim 3D027 .S 3714 4374 46.79 4981 66.8 O 6zs2 54.45 5SZS 76s6 58.11 46.03 A A W AbdSa* 118m 9.45 1185 tss4 Ust `1458 187 21.47 21.71 2558 253 216 22.77 Fk,dI rrmt 417 718 01M4 11.73 11 124s 12.25 12.71 11.58 518 5.07 8,52 4.02 biga6do .Rod ai5d 8.42 718 8.45 918 11.17 1330 15819 1618 17.77 1718 188 704 7.27 sow 01?7 3.10 043 026 023 023 9.12 026 026 034 24.05 13.74 73 kd6a5y NW Jw* 0.78 0.s 0oso O.4 1.17 lA5 204 118 1.01 0.92 03 1.27 1.15 Truat 242 332 48 41D 6,10 6.75 781 935 138 03 C46 0.90 060 Sdwm Ts*m uwi bit4mun04 om 002 om 014 0.07 am 0.53 0.5 8.5 0.08 058 0.04 o.C6 C8m 3.15 045 055 0.76 017 0.75 018 1.07 121 119 166 119 1.87 lIL Gwd Sm 25.3 3111 3501 401O 47182 58.5 6.83 7718 106.14 1239 147.WM 17418 210.46 5aumd s 0.74 118 110 118 221 138 226 258 225 43B 318 3.43 32 FscdSur . 135 324 2.84 2.A5 4.43 51 618 757 25.3 23.12 3417 4818 48.37 htmuPlFay 1114 14,17 1682 18B3 21t4 25.17 2SSS 3552 4433 4916 53.59 64.17 7442 M*i*dm sSWA 8fs8 677 11S7 13A4 1318 1886 1957 2273 22.84 31.70 3318 3441 36.56 ft. m wd igws 3.27 316 411 418 526 637 8.18 918 979 1624 2118 2317 4767 rv. oum BpadtL 0.403 0.7 0159 OA4 045 OA7 017 1.45 176 8.5 892 7.54 895 EVEJE PElBXUT 87.54 10DA3 115s7 13118 148.12 17118 2;6A6 22ss7 25.663 2z53 374.01 373ss 40118 stne: Gm 203 WW 4.mns Owg F d hk F03&At en 6t F1 m vwibm 25 Tai.AM2 ahwaMz R _me (Ra bOlan at curet pta.) 190041 199142 1 43 199344 1944e 199 99 01 19907 19074 109 1M 201 21 9.9 2092.0 RLE B.E. 1. <'Om To Pawom 51.20 5954 6.61 78P3 9455 109034 117.15 137.19 12.02 17265 19727 232M3 24623 ATauscnln nsmdElerdin 1.91 2.12 2.3 2.53 2S9 3.31 392 395 5.46 109 947 11.03 14034 S. TamonPq,l 348 4.14 S56 6.90 1230 13.57 13.85 17.82 17.20 21.18 24.16 27.32 29.98 a Lwdt Rio 062 0.44 0.72 0.77 1.14 121 1.10 092 1.12 1.78 2.15 2.92 313 b,S1mr as Po9m Fen 286 370 4.84 6.13 11.17 123 12.75 1690 1109 19.40 2201 2450 2875 cTamanhuonobthPslb 0m 018 01.0. 000 030 0.00 03 03 0.03 0.98 0.00 0DO 0DO QTa T aiQ aniui u 4281 5328 57.69 6753 7925 9Z47 99.48 115.4 1193 143.39 16365 19425 20231 aSttoE w 5A2 6.1 690 903 9.44 10.71 10.09 16.51 17.49 1178 17i0 19,25 21.50 hLS"iTo 31.74 3dO9 41A1 4741 5755 64 72190 7625 90.67 105.09 12119 13118D 146.80 a.Tax an Vohdc 2.04 233 23. 2.70 345 423 614 7.52 637 7.09 718 950 1025 d.ToxoanGoxBQaJa Puowgo 2.02 119 209 252 2.79 2.49 201 341 2.81 3.32 1D0 11S8 5.79 a.ToandDissoniBeddIy Z78 218 Z7 337 337 3.57 4.03 536 7.11 3.78 934 15.63 11,17 6tfw 118 1190 217 2.51 2.62 3.03 3.72 438 4.91 137 56.8 6.12 680 II. Shwoofa dTxTaw 9.90 1M20 13.97 1541 1720 16.77 22.75 17322 29 26.09 2711 2451 28.40 TAX REVENE 61.10 71.74 79.58 9238 111.75 126.12 139.90 15451 17124 198.74 Z7538 257.14 274.63 III StoWoownNrTbRwomn 17.4 1718 1933 23.83 293 27.75 37.55 3241 35.73 39.37 55.96 32.74 48.05 A. bodPsR tUMd o&P ISW 86S7 712 634 9.31 1131 1275 2044 17.03 16.60 1729 3116 954 1152 B.Gww i#SoAo 289 2.18 203 23D 237 301 2.8 3.18 ,Z.2 4.34 5A7 624 1822 C. oodiswfos 0on 126 1.15 1.49 Is/ 164 1.74 ' 2.31 264 3.15 3D0 353 386 D. EWaric4Smion 750 652 7.81 10.73 1327 10534 1Z49 13U8 13.66 14.60 1510 13.43 1445 EFRso Soro 03m 0.00 000 0300 O0 000 03 0.00 0.09 0.00 000 o0 0.00 IV. G=b l.a t k 718 8.11 928 1318 10.12 1172 15.10 1224 10.40 14.59 1463 21.98 2352 NO*TAXREIENUE 251f9 25$9 29.61 3749 39.15 39.47 52.65 485 4613 531.98 709 54.40 7157 1EVdUEECEIPTS 69791 97.73 109.18 12937 15098 165.59 19255 203.17 217.37 25269 295.67 31154 34620 SDo : GdM, 2D02 03 BAI9 D omw1, Pa Bank of Ia, k 9 BiiD" a, S& R nw ( a. louts) 26 Table A2.3 Mahaashtr: Cpal Expditwe & Net Lending (R. bilton at cueurit pices) 199001 1991.92 1992-93 1993.94 99495 199&96 1996.97 19978 1999.99 1996.99 29 1 2D0142 2802.03 ROE R.E 1. SodaldSw 0.656 066 090 0.97 1.03 1.27 122 1.38 z7s 1.81 120 164 185 E9icori.SporMatdCaiuftaO 9.99 009 0.10 o91s 023 0.38 0.39 0.30 042 026 0.12 008 0.9A Haab dFWiLY0go 0.20 018 020 0.24 0.15 019 022 0.24 025 0,38 0.39 9.56 0.71 WANsupp* ad S -ti 0.05 0.05 003 o901 0.17 0.02 0.03 0.04 003 003 003 001 001 1wauedScs.STS idoewsCs 0.07 Oil 0.16 .15 0.15 020 014 038 031 0.61 019 0.66 064 Ohm 027 0.23 031 0.43 0.32 9.51 043 0.43 1,77 052 048 03B 041 It Ec5a,SwAm 9ao aas 1274 15.44 39.42 2541 2554 3024 28.39 3505 4297 31.17 3.o09 ,VtAP1 and AA &Adk es 0.82 1.10 3.03 2s2 z82 338 3.39 Z60 4S5D 797 4.15 4.48 z83 &,W iandFloodCe* 974 523 670 9.54 1255 15.64 1Z38 17.72 1199 1567 9.65 1601 14.58 E,Wg(PewpRded) 0.54 1.06 1.34 153 17.12 1.71 409 344 291 199 2195 Z84 Z75 h5zs9y aidInwnk 9.19 -05 0.05. 0 402 0.03 0.12 023 023 9.24 0.22 0.13 0.14 0.03 Tranw 151 1.49 1.71 z25 368 4.54 5.46 6.24 9.74 917 705 798 5.69 ohm 9.09 9.01 00 OOO a 9.01 9.01 002 001 002 066 004 9.01 002 L Gwal5Sees 9.19 021 026 9.34 0.51 035 0.45 0.51 0.75 075 046 034 0.39 PV.Lan bystB Gu l(r 992 4.08 4.77 4699 .657 8.39 643 650 344 3978 -3321 1079 784 Lonai byStaiG Cm14b 7.14 6.40 612 479 9.63 10.09 852 9.44 914 3927 -726 1948 10.61 Sad seA 1.09 155 12. 1.76 224 321 277 2.93 z66 Z66 1.65 239 z51 Ag1t- o941 0 56 0.51 9.79 027 5.25 0 61 0 55 0 39 613 0 69 809 520 Pam FR*rB 474 3,98 3.96 345 520 1.82 4.38 404 284 3.47 231 5.31 0.66 hbiul 9.07 012 0.09 0.07 026 0.03 0.19 020 027 02. 077 115 051 OOws o9.6 9.19 0.30 9.72 161 S 0.31 037 072 411 3675 -1Z69 154 192 FAw duyorLos 1.22 232 1.34 211 1820 1.61 209 193 270 251 2595 z20 3.17 Sodal Surn 9.10 0.14 014 o91s 017 0.19 0.23 029 0.24 033 092 003 0.84 Aqiahz 930 1.09 02. 9.82 031 O11 0.15 0.13 914 004 227 9.14 014 pPFFlRe 9.39 042 046 OS 1511 066 092 053 069 1.09 2307 1.09 133 tnij*m 9.01 0.04 066 900 o.66 007 006 o05 9.00 O11 006 006 006 Ohm 9.43 073 0.42 a9. 055 1.24 074 094 157 104 063 067 0.92 CAPTAL EXP90TUE & NET LENDING 1f 56 13L81 18.57 21.43 31 39 35 42 33203 39 82 35.36 74 37 1143 4994 35 96 Sau (S 2D02403 BulgDaa9FR6 -Rdsw Ba* B a n Sab Fbw oes , vb, Wm= 27 Table A.4 Maharashtra: Fiscal Summawy (Rs. billion at current prce6) 18990D 19919D2 1992D93 1993D4 19945 199519 199617 19971 199199 1999100 200010 2001/02 2002/03 RE BE STATE GOVERNMENT Rmvnue 82.9 932 103.0 123.6 143.7 157.7 192.9 191.9 2043 239.6 281.0 3071 341.7 StlasOwnReesnue 651 72.8 797 94.8 1164 129.2 145.0 1623 154.7 1979 2386 2609 2898 CarrEalResoss 17.9 20.3 23.2 291 27.3 28.5 379 29 6 396 407 42.4 46.2 519 Non-intaratExpinidtures 87.1 95.5 112.0 127.9 150.4 174.0 202.4 220.9 234.0 304.3 3139 350.7 3538 Salaries 34.3 442 502 56.3 616 70f6 791 864 1003 1663 1345 1460 138.7 Parsurns 4.0 44 5.2 57 65 8.1 104 121 125 20.3 30.8 311 353 Non-WageO&1M 188 186 22.5 21.7 251 26.8 367 43A 429 30.7 415 499 510 Adnstran0seEspurdibfnm 4.1 39 39 5.4 7.3 76 8.5 80 80 88 91 84 80 Subsirlies 2.5 2.5 3.2 3 5 3 9 4.8 0.0 5 6 7 6 8.4 31.1 23.5 15 6 POW Subsiy 0.0 0.0 0.0 0o0 0.0 0 00 00 00 00 23.7 128 7.1 Debt Svsioa on CIs davong on to GoM Othrse 2.5 5 3.2 35 3.9 48 6.0 56 76 8.4 74 15.7 85 Devoanrto ULBs(Non-Salary) 1.0 1.2 1.7 18 1.5 2.4 30 3.5 3.6 68 70 8.8 81 Mm RecurrringE Wjerditie 69 7.0 6.8 11.7 131 183 250 21.1 237 11.7 253 28.1 611 Rupapryr on OfflBudgel BHo rnig 0 0 0.0 0 0 0 0 0 0 0.0 0 0 0 0 0.0 0 0 0 0 0 0 0.0 00rs 6.9 70 68 117 13.1 183 250 211 23,7 117 253 28.1 611 CnpWal 9.6 97 13.8 167 38.0 27.0 27.2 32.1 319 37.6 446 33.2 283 NeOtLen1ng 5.9 41 48 47 46.6 8.4 64 6.5 34 136 -10.1 16.8 76 GoM Pr ,y Surplus +)IlD (-i 42 -2.3 .9.0 -3.7 -67 .16.3 -19.6 -28.9 -299 .45.7 -22.9 43.7 -121 trle.mstPriments 88 11.6 134 151 176 20.6 245 29.0 374 50.3 556 674 776 On Onr-Burgel D0bt 8.8 116 13.4 15.1 17.6 206 24.5 290 367 48.8 523 628 72.9 OnOf4ludgd Debl 00 00 0.0 0.0 0.0 00 00 00 0.7 14 3.3 46 4.7 GoMRevenueSurplush(*) OIDefti- 2.6 -0.1 -3.8 2.6 7.1 -1.5 -10.4 -19.3 -31.7 44.7 -532 -41.1 -53.7 GoMFiscal Surplus 0)IDefidt0- (1) .13.0 -13.9 -24 -16.8 -24.3 -39.9 -44.1 57.9 J87.0 -115.9 .4 .111.1 -9.7 POWER SECTOR Rsenuo (Exd.PowweSubstdy)(2) 30.0 34.3 44.8 54.6 64.4 73.9 88.2 95.2 1054 111.3 1226 n.m. n.. CahOpouilngEeodanturm(excl. Dopfecdaon)(3) 23.3 27.5 321 405 47.3 60.9 70.5 76.4 83.2 103.0 12D4 n.a na. Earrdng bdorerLaDepn.Tax s6Appropm (EB9DTA)i(4)(2H3) 6.6 6.8 12.8 14.2 17.2 13 0 17.6 18.8 222 8.3 2.2 na. na. rrta & Tvaro 1(5) 5.5 4.1 6.5 7.2 7.0 7.3 7.6 8.8 111 129 13.9 na n A NbtPmfiet(+) ILmI- iascxd. Oepm) befmSubs ldy (si.4(45) 1.1 2.6 6.2 8.9 1.1 56 10.0 100 11.1 -4.6 -11.4 na. nA. CapItal Oueay (7) 104 10.1 11.8 10.2 14.1 14.5 18.1 18.1 17.0 18.4 9.6 n a na Powr-Sotor FInancirtng Raquirmenvt (8) (7Y6) 9.3 7.5 5.6 3.3 4.0 8.9 8.0 .2 59 22.9 21 0 24.1 nA. Nt OI743udge Boerrwin9 (9) 0.8 060 0.0 0.8 0.0 0.0 9.8 6.5 25.3 23.5 304 21.4 nA. CotodaeddSurptu ( +)I/ Dofld(- 0(1)IH)111[)+(i11l[(H9) -17.2 -166 -23.1 .17.6 -21.0 422 -54.3 45.6 403.1 -157.9 -113.9 -136.6 na. Gohi Fiscal De it(i) -13.0 -13.9 -22.4 -16. -243 -36.9 44.1 as7.9 47.0 -1159 48.4 -111.1 49.7 o/v Grm BudgetrySupporttoPower(11 ) to 4.6 4.8 45 7.3 3.5 7.6 6.9 5.1 4.5 259 20.0 92 PswrSubsidy(i I) 00 0.0 00 0.0 00 0.0 0.0 00 0.0 0.0 23.7 12.8 7.1 CapitalOu0ny&NentIsdLng(Ii) 4,9 46 4.8 45 7.3 3.5 76 6.9 51 4.5 2.2 7.2 21 NonPewerDeficit (12)-(i)*(1) .891 .63 -17.6 -14.3 -17.0 43.4 .36.5 -41.0 4620 -111.5 -62.5 41.1 40.5 OebttStock of GoM 100.4 115. 127.7 142.4 160.2 182. 217.5 258.7 311.8 383.0 448.9 535.8 583.1 Debtlncl.OffBudggt9nonmWrng 100.4 1159 127.7 142.4 160.2 192.6 227.3 274.9 353.2 4479 542.1 6525 na. tw Ofl-BUdgitBwuoing b 0,00 0,00 000 0.09 006 000 9.75 1621 41.45 6494 9534 11677 n.a. GoAPDebtan oGuiaranta 155.0 183.9 206.7 250.3 280.1 323.0 3S25 481.0 575.2 02.4 10679 1278.8 nJ. olwrGarantl 548 68.2 790 108.0 1199 140.2 1650 222.3 2634 4194 6211 7410 n.s Ndaes. a Dala an guarmntes sni ofltudget bom*ing rertseuI fiures os o c mtuaes frere km GoAM fcr gli years up Is 20011Q2 b OI.axlget Bowring meiss to Guaresrles which are being s/vikcr by GoM from the BLrdget shown tom sLh yearr win imch the de/bt was rmisal 28 Table A2.5 Maharashtra: F16csi Summry (% GSDP) (Pacestof GSDPF 1990/91 1991192 1992193 1993t94 1994t95 1995196 199St97 19971989 199 199910 2000t01 2001t02 2002103 RE BE Rwmenue 1Z3% 122% 11.0% 10.9% 11.1% 10.0% 10.3% 9.9% 9.6% 9.9% 10.9% 10.7% 10.7% Steat'sOwn Renue 97% 9.5% 85% a4% 9.0% 82% 92% 83% 7.7% 82% 9.2% 91% 91% Centrl Resoces 27% 2.7% 2.5% 2.e% Z1% 18% Z1% 1.5% 1.9% 17% 1.6% 16% 1.6% Nonrtrest Expsendtures 129 12.5% 11.9% 11.3% 11.6% 11.0% 11A% 11.3% 11.0% 12.6% 12.2% 12.3% 11.1% Salares 5.1% 5.8% 5.3% 5.0% 4.7% 45% 45% 45% 4.7% 69% 5.2% 5.1% 4.4% Pensioms 0.8% 0.6% 0.6% 09% 0,5% 0o.% 06% 0o% 06% 0,s% 12% 11% 11% Non-Wage O. 2 8% 24% 2.4% 1.9% 1.9% 17% Z1% 22% 2.0% 1.3% 1.6% 1.7% 16% Admn brsatvExpendrres 0.6% 05% 04% 05% 06% 0.5% 0.5% 0,4% 0.4% 0.4% 04% 0.3% 03% Subsidies 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% 03% 03% 0 4% 03% 12% 1.0% 05% Power Aumis* 00% 0.0% 00% 00% 00% 0.0% 0.0% 0.0% 00% 0.0% 09% 04% 02% Debt Service on CLs devaoiMng on tD GDM Ofrs 0 4% 0.3% 0.3% 03% 0.3% 03% 0.3% 0.3% 0.4% 03% 03% 0,5% 03% Dwsnu to ULBs (Nonat-ary) 01% 0.2% 02% 02% 0.1% 0.2% 02% 02% 0.2% 03% 0.3% 03% 0.3% OmwRReruing Expwnd1re 1.0% 09% 07% 1.0% 1.0% 12% 14% 11% 1.1% 0.5% 1.0% 10% 19% RWpaynW rnt iOffaidgetBarwrlng 00% 00% 00% 00% 06% 0.6% 00% 00% 0.0% 00% 00% 0.0% 0.0% O0as 10% 0.9% 07% 1.0% 1.0% 1.2% 14% 1.1% 11% 05% 1.0% 1.0% 19% Capital 1.4% 1.3% 1.5% 15% Z9% 1.7% 1.5% 17% 15% 1.6% 17% 1.2% 09% Net Leding 09% 0.5% 0,5% 0.4% 405% 05% 04% 0.3% 0.2% 0.6% 4 4% 0o.% 02% GoMPrlbn rySurplus(I)/Defl(t) 4.6% -0.3% .1.0% .03% 40.5% .1.0% .1.1% -1.5% *1.4% -2.7% -1.3% .1.S% -0.4% IntarstPnrrb 13% 15% 1.4% 13% 1.4% 1.3% 14% 1.5% 18% Z1% 22% 2.4% 2.4% On On4-udget Debt 13% 1.5% 1A% 1.3% 1.4% 1.3% 14% 15% 17% Z0% Z% 2.2% 2.3% OnOff-aidgetDerbt 00% 00% 0.0% 0.0% 0.0% 00% 0.0% 02% 00% 01% 0.1% 02% 0,1% GoM Rvenue Surplus (-)IDefilc( 04% 0.6% 404% 02% 0.5% -0.1% -06% -10% -1.6% .2.7% -2.1% .2.1% .17% GoM Fscsi Surplus(+)/ Def6 (-)(1) 41.9% -1.9% -Z4% .1.7% 41.9% -2.3% .2.5% -10% .3.1% -4.8% .3.4% .39% -2.6% POWER SECTOR Revenue (ExcL Power Subsidy) (2) 4.5% 4.5% 4.8% 4.8% 5.0% 4.7% 50% 4.9% 4.9% 4.6% 4.7% nM. n.a. Cash Operalng Expendltum (excL Depredation) (3) 3.5% 3.6% 3.4% 3.6% 3.6% 3.9% 4.0% 3.9% 3.9% 4.3% 47% n.-. n.L Eamlngbdo rent Depm To &APrppnm(EBiDTA)(4)o(2)3) 1.0% 03% 1.4% 1.3% 1.3% 0.8% 1.0% 1.0% 1.0% 0.3% 0.1% nA n.a. Intermst&Txation(5) 0.8% 0.5% 0.7% 0.9% 0.% 0.5% 0.4% 0.5% 0.5% 0.5% 0.5% n.a. n.a. Not Prot (+) I Loss (-) (exs. DOrpm) bdore Suobsdy (6) (4H5) 0.2% 0.3% 0.7% 0.6% 0.8% 0.4% 0.f% 0.5% 0.5% 40.2% -0.4% n.a. n.L CapftnlOutiay(7) 1.6% 1.3% 1.3% 0.9% 1.1% 0.9% 1.0% 09% 0.8% 0.8% 04% n.8. n.a. Power Sector Finedng Rqulmernent (8) * (76) 14% 1.0% 0.6% 0.3% 0.3% 0.6% 0.5% 0.4% 0.3% 1.0% 0.8% 0.8% n.e Net Oft-Budget Borowing (9) ' 0.0% 0.6% 0.0% 0.0% 0.0% 0.0% 0.6% 0.3% 1.2% 1.0% 1.2% 0.7% n.r. ConssidaedSurplus(u)IDetidlt(-)(10))(1)ix9)+(11l)+(11l/X9) *2.6% -2.2% *Z5% *1.6% -1.6% -2.7% *3.1% 3.4% .44% .4.5% -44% -4.8% n.L GoM Fiscal Defic (1) -19% -1.% -2.4% -1.7% -1.9% -Z3% -2.5% -3.0% -311% -4.8% -3.4% -3.9% -2.6% ovGross BudgetoirySupporttoPowNrl(1) 0.7% 0.6% 0.5% 0.4% 0.6% 0.2% 04% 0.4% 0.2% 0.2% 1.0% 0.7% 0.3% PoweSubsidy (1 1i) 00% 0.0% 0.0% 0.0% 0.0% 00% 0.0% 00% 0.6% 0.0% 0.9% 04% 0.2% CawlIOutlay&Net Lnding(11f) 07% 06% 0.5% 0.4% 0.6% 0.2% 04% 0.4% 0.2% 0.2% 01% 0.2% 01% Non4Power Defici (12) - (1) 4 (I11) -1.2% -1.2% 419% -1.3% -1.3% -2.1% -2.1% -Z6% -2.9% 4.6% -2.4% -32% -ZS% Debt Stodkof GDM 14.K% 12% 13.6% 16% 12.3% 11.6% 12.3% 113.% 14.6% 15.9% 17.3% 18.7% 18.3% Debtlnd.OftBudget ersoWng 14.9% 152% 13.6% 1Z6% 12.3% 11.6% 12.8% 141% 10.6% 18.6% 21.0% 228% n.e. ohOM , dget0arMelng I 0,0% 00% 00% 00% 0.0% 0.0% 06% 08% 19% Z7% 3.7% 4.1% na GoAP DebtandG uraose 23.0% 24.1% 22.0% 22.1% 21.5% 20.5% 21.6% 24.7% 27.0% 33.2% 41.3% ".6% n.e o/wGuarntses 81% 89% 84% 95% 92% 8.9% 93% 11.4% 124% 174% 240% 259% na. GSCP(Rs.billion)' 072.7 760Z82 93.26 1133.20 1300.07 157010 1773.15 194602 2131.47 241410 2502.72 2800.05 3193.23 29 Table A2.6 Maharashtra: Outstanding Stock of Bond Guarantees Issued by Govemment (End Year) (Rs. Billion) Borrowing Agency 1996597 1997-98 1998-99 1999-00 2000-01 2001-02 Guaranteed & Serviced (Off-Budget Borrowing) 9.75 16.21 41.46 64.94 95.34 116.77 MH Krishna Valley Devt Corp 9.75 10.95 21.33 29.32 39.45 50.48 Vidarbha Irnigation Devt Corp 0.00 2.26 4.59 7.66 12.19 14.30 Tapi Valley Devt Corp 0.00 0.00 2.41 4.39 7.48 10.27 Konkan Irrgaton Devt Corp 0.00 0.00 1.28 2.13 2.13 3.88 Godavari Marathwada lrr Devt Corp 0.00 0.00 2.58 6.92 10.76 13.15 MH Jeevan Pradhikaran 0.00 2.99 9.26 13.45 18.45 19.36 MH State Police Housing & Welfare Corp 0.00 0.00 0.00 1.07 1.23 1.23 MH Water Consefvation Board 0.00 0.00 0.00 0.00 0.43 0.43 MH Cotton Growers Marketing Federation 0.00 0.00 0.00 0.00 3.22 0.52 MH Co-operative Devt Corp 0.00 0.00 0.00 0.00 0.00 1.00 Ind. Dept through SICOM (Secudtization of Sales Tax) 0.00 0.00 0.00 0.00 0.00 2.17 Guaranteed, Not Serviced 0.00 14.42 22.84 33.53 44.89 47.52 MH State Road DevtCorp 0.00 11.71 11.71 21.21 27.63 30.25 MHStateElectricltyBoard 0.00 2.71 11.13 12.32 17.06 17.06 Goregaon Chitranagari 0.00 0.00 0.00 0.00 0.20 0.20 TOTAL 9.75 30.62 64.30 98.47 140.23 164.29 Source: GoM, Finance Departrnent 30 Table A2.7 State-Wise Composdlon of Outstanding Debt (a) 1990.91 1991.92 1992-93 1993-94 199495 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 R.E. Rs, BilBin Andhra Pradesh 68.15 79.92 92.86 110.64 130.05 151.64 168.94 199.69 23685 287.98 359.79 Bihar(b) 92.31 10793 121.95 135.93 151.06 165.67 181.85 20164 231.93 283.53 33816 Gujaiut 62.30 70.71 78.60 8583 96.67 111.28 12784 15061 18562 22984 297.33 Haryana 28.21 31.91 3579 41.31 47.33 5777 6525 76.31 94.95 11556 13481 K kamak 4633 53.33 61.45 7280 87.38 98.92 113.44 12945 154.43 187.25 22438 Keria 44.42 51.91 59.05 71.99 88.21 101.13 11422 128.69 15700 20176 237.79 taayaF Pradesh (b) 65.25 7612 8241 95.20 10577 123.18 139.66 160.40 19267 230.90 267 94 Maharashitra . 100.40 115.76 12768 142.35 160.20 18280 217.51 258.70 311.76 38300 456.75 Orissa 45.31 5269 61.29 70.13 7960 93.85 109.33 124.02 150.56 183.08 21278 Punjab 68.59 7893 94.69 105.00 121.49 136.30 152.50 172.16 20876 23662 280.50 Rajasthan 5738 6546 74.05 8701 10198 121.92 14625 164.31 211.06 266.83 308.19 TamriNadu 55.01 6527 7724 93.25 111.73 125.52 141.83 162.83 195.82 238.39 290.08 UtlarPradesh (b) 151.98 176.69 201.08 230.09 265.63 29976 346.27 400.07 486.24 59970 707.98 WestBengai 78.70 8959 98.74 113.11 130.59 153.99 181.08 220.41 28617 37006 46925 14 MAJOR STATES 964.32 1116.21 1266.S8 1454.64 1677.69 1923.73 2205.97 254929 3103.82 3814.50 4585.73 % GSDP Andhra Pradesh 19.3 18 5 19 7 191 18.9 19.0 18 7 20 8 20.9 23.7 26 4 Bihar(b) 33.0 346 362 34.8 342 37.1 339 333 350 39.3 425 Gujarat 20.5 21.3 180 17.5 15.2 15.4 148 16.2 17.6 214 24.9 Haran 19.6 18 5 19.5 19.1 18.4 19.8 18.6 20.2 22.1 24 5 25 3 Kanataka 18.5 16.5 17 3 17.7 18.2 17.6 17.3 18 1 18 1 19 7 20.6 Kerala 26.9 25.3 25.3 27.3 27.7 261 25.7 26.0 27.8 311 31.8 MadhyaYPadesh (b) 18.1 19.8 19.1 180 18.0 18.7 185 19.8 212 22.5 233 Maharmshtra 14.9 152 14.0 126 123 11.6 123 133 14.6 15.9 177 Orissa 39.8 36.0 38.7 38 5 36.6 35.3 42 0 39.2 43.5 48 2 50.1 Punjab 37.3 35.5 37.0 34 7 35.6 35.4 34 5 35 6 38.4 37.7 39 6 Rajasthan 23.9 24 6 23.7 26 4 24 6 25 7 25 4 25 7 29 0 35.6 36 5 TamiiNadu 15.8 159 16.2 16.2 163 160 15.8 157 164 181 194 Uttar Pradesh (b) 24 9 24.8 25.8 26 3 26.0 25 9 251 27.0 28 5 32 0 33 4 WestBengal 210 206 21.2 21.2 21.1 209 221 22.5 24.7 278 30.2 14 MAJOR STATES 21.9 21.8 21.8 21.4 20.9 20.8 20.7 21.6 23.1 25.8 27.6 Notas: (a) Incdudes StDck of Loens from the Center, Intemal Debt and Provident Fund (b) As they existed beform the creation of Uttaranchal, Chhattisgaer and Jharftrand Source: Debt Stock - RBI, F'8I 8uuetns on State Finances, various uses; GSDP - GoM, Department of Economics & Statsbcs for Maharashtra, and CSO for the rest of the states, for the period 1990-91 to 199900; Staff EstimatBs for 2000-01 31 Table A3.1: Revenue and Components per Capita, 200041 (On Current Rupees) PerCCapt GSOP Own Reuns Ovn Tax iru e Own N-Tax Om NTax t mFis Sae Tax Sbt Exalse Motr Vehacea. Goods Stainp DLre at (18J9900) Rtv e hs lntrestRel11 anPa g Taxms Ragistrtan Fee BO1W 7208 569 387 182 148 252 45 33 40 olsa 11510 881 844 237 23D 388 81 102 39 UtxPradesh 11589 776 86s III 8s 389 145 42 8s Mura 12937 1089 804 268 114 372 151 118 88 Pradesh P48tax 14551 1441 1077 384 27 5887 229 104 94 VWedBegad 18054 969 857 102 87 540 84 28 84 AMIrh 182I0 187? 1415 392 188 948 184 132 88 Pradesh Karrta 20289 2051 1748 306 178 1032 2s7 190 150 Tari Nadu 22179 2249 2019 234 18 1292 347 147 153 Keala 23089 2243 1988 2s8 231 1393 248 142 145 GuJasI 24961 2783 2148 839 291 1294 6 251 123 Kffy-a 25435 2758 2081 875 548 1102 517 222 203 Maharhhta 28488 2519 2114 406 374 1313 198 121 229 PunJb 26840 2755 1637 1118 929 918 424 107 138 AVERAGE 18B2r 1776 1398 377 270 941 208 124 115 Nutes (a) ^ Per Capia GDP id Fade CoAs. 1999-2700. Dat Srt: vWh Bwt [11 Wmts rsleepts bude book fran os (nt#a ardria, ) ,,58nt 4 ai0on: de we a nod axilde for al states Table A3.2: Maharashtra's Revenue Receipts (Percentages of GSDP) 198s46 1990-91 1995.9 1996.97 1997.98 1998.99 1999400 2000401 2001402 (BE) Total Revenue 13.31 12.34 9.94 10.34 9.89 9.77 9.88 10.88 11.6 Own Revenue 10.69 10.28 8.69 8.78 8.98 8.51 8.78 9.8 10.06 Tax Revenue 7.58 7.61 6.93 6.65 7.1 6.8 7.15 7.64 8.4 Sales Tax 4.8 4.72 4.34 4.14 4.05 3.86 4.35 4.72 5.18 Excise 0.66 0.81 0.68 0.61 0.85 0.84 0.78 0.69 0.66 Stamp Duty 0.3 0.43 0.78 0.72 0.87 0.77 0.8 0.85 0.84 Motor Vehile 0.31 0.3 0.27 0.35 0.39 0.3 0.29 0.3 0.32 Professions Tax 0.24 0.28 0.21 0.22 0.2 0.26 0.33 0.37 0.35 Land Revenue 0.12 0.09 0.08 0.06 0.05 0.05 0.07 0.08 0.03 Electridty Duty 0.43 0.41 0.23 0.23 0.28 0.34 0.16 0.36 0.38 Others 0.73 0.57 0.35 0.32 0.4 0.37 0.36 0.26 0.64 Non-Tax Revenue 3.11 Z08 1.21 1.54 1.27 1.08 1.05 1.6 1.5 Interest Receipts (net 0.88 0.39 0.25 0.57 0.26 0.16 0.13 0.66 0.19 of contra interest from Irrigation) Dividends & Profits 0.01 0.01 0 0.01 0 0 0 0 0.01 Other O9n Nn Tax 2.22 1.67 0.95 0.97 1 0.92 0.91 0.94 1.31 Revenue Costrecoveryfrom 0.12 1.39 0.68 0.74 0.78 0.73 0.74 0.75 1.11 soda] and economic servio3s Forestry & Wild Ufe 0.4 0.23 0.09 0.08 0.08 0.06 0.06 0.05 0.07 tndustry& Mining 0 0.05 0.18 0.15 0.14 0.13 0.11 0.14 0.13 Transfers From Center 2.62 Z65 1.81 2.15 1.53 1.9 1.68 1.64 1.7 Sourme: Wodd Bank 32 Table A3.3: Long Run Buoyancies of Own Revenues and Components, 193081 to 1999-2000 OS Per Capi GSDP In Own Own Tax Own Non-Tax Own Non-Tax Revenues SlesTaxK(ned State Exdse MotorVelicdes, StznDutiesand regrasson Rupees (1999-00) Revenues Revenues Revenues ess In st Receipt CST nd STOM) Goodsand Relatrton Fees method Pessegr Txs Bihar 7268 1.01 1.06 0.89 0 31 1.03 12 1.17 1.34 Orissa 11510 1 1 07 0.88 1 1.15 1.06 1.13 1.02 UtErPradesh 11589 0.98 1.02 0.81 0.84 1N0 1.23 075 1.12 Madhya 12937 0.93 1 0.81 0.52 091 1.11 1.01 116 Pradesh Raisthan 14551 0.97 1.02 0.88 082 0.95 1.37 0.87 1.29 West Bengal 16054 0.92 0.98 0.55 0.69 1.02 0.91 0.41 1.13 Andhra 16205 0.9 0.91 087 0 82 1.05 0.65 0.96 1.04 Pradesh Kanatatka 20269 0.94 1 0.69 0.65 1.06 0.89 0.98 1.24 TardlNadu 22179 0.94 0.97 0.78 0.76 0.98 0.98 0.91 1.04 Kersaa 238M9 0.93 0 99 0.62 0.79 1.04 085 1.04 1.05 Guarat 24961 0.99 1 099 088 1.03 0.78 084 1.11 Haryaa 25436 1 07 0.97 1.17 1 34 1.06 0.76 0.84 1.09 Maharasla 26488 09.1(13) OAS5(12) 0.77(11) 0.67(12) 0.96(12) 1.07(5) 0.99(8) 148(1) Purnab 26840 1.07 0.94 1.34 1.53 0.97 1.06 0 78 0.88 AVERAGE 18027 0.97 0899 9.8 0.83 1.02 0.99 0.9 1.14 Notes: (a) *: Per Capda GDP at Factor Cost 1999-2000. (b) Rgures m parentses for Maharashtra ase s rark among the 14 mapr staa (c) Excise regressions forAP and TN are nth Data Sounres Woaid Bank and RBI. Table A3.4: Performance 0l the GSDP buoyancy and Smple Growth Rats Modela In Mttaharshtra: Poor Predicdon of Rewenues States Own Sta ts s Sats. Own Nan- Sales tax SSExc*isbe MotrVehlcksGoods StanipDuinarWa Protessions Eiec'ct5 Land Rvewn Tax ases. Tax Rwvenue end Pas_a r Tae Regolsatlon Fes tax Duty Rvenw u twicyin 20l02 40.38 -.47 0.02 4054 03 13.1 022 049 -356 12.45 Average Buonyeci i° 1997-98 to200I-02 11 124 0.64 123 1.18 275 123 202 853 Z12 1992-93ts2DOe012 0.99 1.03 0.88 1.01 09 1.81 151 1.39 448 1.64 198tt7to200142 1.01 1.08 083 107 108 1.8 167 132 3.25 1.06 MaxaenBauoyancy 2.91 2.91 2.91 3.32 558 131 5.56 3.98 4296 12.45 tmherjn&uoyanCv 4.38 -047 -031 4.54 *115 -221 -051 036 -3.56 .691 Codf6cfdntofvwaicn 0.75 0.73 1127 0.84 1.38 2.14 1.01 0.88 3.32 lv9 %negative b-yo 625 625 31.25 625 12.5 1875 625 0 25 4375 Gvt rate in2001-02 4.03 -5.01 023 477 3.19 140.68 237 522 -38.18 133.7 Average grelh rate tar 1997-98 to2001.02 1003 11.5 5.17 11.62 12.57 3135 12.32 2121 5611 20.89 1992-93to200102 1249 13.06 11 1281 12.63 22S5 21.51 1687 3146 2644 198687to 2001402 1343 1437 1114 1420 1523 . 20.3 2325 18.15 25.21 20.27 Atian 226 22.85 36.92 30.28 54.5 140.68 8225 6331 30002 133.7 mnmOman 4.03 -501 .439 -4.77 -803 -16.02 -486 3.58 -46.89 -4828 Coeftichintof vadfafn 0.51 0.5 1.21 0.61 0.96 1.77 0.89 0.92 3.85 239 %nagags neh rda 6.25 625 31.25 625 125 18.75 625 0 25 4375 33 Tabl A&i ushomhlra Sats Eitbty Bowd Operatlons P okm nce FY ( 91 - 01) 1990I- 199142 199203 193 19940s 1 9 1997 199746 19OU 19o0 209001 IroMal (pa*l(UW) 7,064 7sW3 7, 7m92 7.725 7.725 7,725 8251 9,350 9,A97 9%766 7nd 5.125 6.535 53 506 ssos s5so5 ssos 6ss 005 60D0 4CO 6,425 1.27 I,9 I.M 1 296 1,3 1 1,308 14 1.3.33 Z13 2429 G99 672 672 72 73 912 912 912 912 912 912 912 GCku Bobid Guie45 (GWh) 28.755 31.39 31,032 34,113 38212 32390 41,02 41,635 44t3s2 4902 4s9929 Thend 21.877 2420 24.050 27,970 29,279 31,213 33,M4 32970 35M 27676 38,718 .ddl *4,148 4,177 3,99253 4,416 9. 3,302 32531 3,661 3.951 3.971 3,n2 Gm Z 12. 2 092 2 D2 1,727 3,62 0 4.75 4,t40 5.o4 9.10 2 3.936 3.473 Plt Loas FagtDr (96) TI"a 61% 61% 60% 62% 61% 65% 69% 690 87% 72% 73% Ga - - * - 61% 56% 63% 44% 49% ftS Awnales CcNs mO ( l) 2331 2325 2494 2692 2576 3210 2730 3104 3296 3410 3485 Not E3ad*i Ge aOon (MW ) 25424 25.0D7 25979 31,421 35,=33 30,30 37,953 35,531 41.06 4Z.72 42445 ElMy Pwd (G ) 7,667 86225 9036 a64 9.584 1232 1ze2 14822 1501 18257 19,616 e lya b er (afb( ) 34,111 37= 37.615 41,068 44.919 49,642 50.815 53,353 56,57 99459 9Z3s6 T&D lmme(%) 18.0% 17.0% 164% 15.8% 15.9% 16,26 110% 17.7% 11% 3D.6% 256 TIDm (Gcmp 6153 69637 9.1t9 6504 7,156 9023 .117 9.459 10269 18,477 2ZO29 El*Way Ses (G Wh) 27,998 30,472 31,454 34,562 37.793 41,619 4*z6s 43.8S4 46, 41,992 45.894 Ag um 9.404 9.177 8,331 8.703 11,453 13332 128.7 15,382 1598 109.33 9,992 11,101 11,392 11,9234 1429 13,330 14,584 14,712 14,967 14,3 16,392 154987 GenTnadw 703 750 851 874 90 97 1,129 1,139 1.243 132 t,472 C t z839 3.148 3,549 3,772 2.9 4,424 4,907 5,341 59915 69455 69750 odes 69911 7,005 9M 8, 7894 8112 .350 8.094 7,395 272 7.460 6,782 Co Mht 10 150 100 1 190 150 1OD 1O 1OD 190 A b". 22.0 25.8 2.5 25.2 303 320 325 320 345 24.5 238 1v4n" 39.7 37.4 37.9 3620 35.3 35.0 34.5 34 33.2 320 38.7 Cerard25 ZS 25 2 2.5 Z4 24 26 26 27 213 3.7 ym=W 10.2 103 11.3 109 10.5 1(16 11.5 122 12z 15.4 16.9 Con 24.7 2330 21.6 254 21.5 19.9 o80 19.8 179 17.8 17.0 Soe: MSEB Asvw Rexl vatus bweLs -o ~~~~~~~~- -------- - - ii i~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~-o-~ ~ ~ ~~~~~~~~~~~C 35 Table A43 Inter-State Comparlson: Selected Indicators of SEB Performance Indicator (a) Andhra Haryana Kamnatala Maharashtra Orissa RaJasthan Uttar All India Pradesh (b) Pradesh Technical State's Instaled Capcily (MW) 6559 1794.5 4817 12290 3479 2626 4425 101660 tydet and Other 40% 51% 60% 21% 54% 38% 12% 29% Thermal 60% 49% 40% 79% 46% 62% 88% 71% Generated Energy by State (GWh) 27155 6497 19472 63312 9964 11519 19001 256057 PurchasedEnergybyState(GWh) 10411 10357 8227 16283 893 12731 20755 250043 Total Energy Supply - Net (GWh) 37566 16854 27700 75595 10857 24250 39756 506100 Energy Billed (GWh) 26008 10375 17867 48904 6080 14102 25285 341794 Total tosses (GWh) 11558 6479 9833 30691 477 10148 14471 164306 Lossesas%ofSupply 31% 38% 36% 39% 44% 42% 36% 32% Commerclal ConsumptionCapita (KWh) 404 507 344 530 313 266.1 150 360 Tot Sales (GWh) 26008 10375 17867 48904 6080 14102 25285 341794 Drrnestic 24% 21% 20% 22% n.a. 20% 32% 20% Agncuture 38% 44% 43% 22% n.a. 28% 13% 31% Industry 14% 20% 22% 40% n a. 32% 23% 29% Others 24% 43% 16% 16% n.a. 20% 33% 20% No. of Consumers (million) 11.1 3.55 8.9 13 17 53 8.2 102 No. of Empbyees 75299 36638 39036 108118 26025 53452 61056 939760 Employees/1,000 Consumers 5.4 10.3 4.4 8.3 15 3 101 7.5 9.2 Employees/GWh sold Z3 3.5 2.2 2.7 4.28 4 24 Z4 FInancIal Unit Cost of Power Supply (Rs./KWh) 3.5 3.7 31 3.4 3.4 3 9 3.s 3 OverallAverageRetailTariff(Rs/KWh) 23 Z5 2.03 2.9 2.9 Z4 Z8 Z1 Doestic (Rs.AWh) 2 2 32 2.3 2.3 2 3 16 1.95 1.7 Conmercial (RsJKWh) 58 4.2 5.6 4 6 3.7 4 4 67 3A Agricutural (Rs./KWh) 03 0.7 0.3 09 1.2 06 0 85 0.3 lndustrial(RslKWh) 4.6 4.14 4.2 4 3.7 38 47 3.6 Overall Avg. TariHICostf Power 66% 67% 65% 87% 85% 60% 80% 70% Agncultural Taitff/Costof Power 9% 19% 10% 26% 35% 20% 24% 9% Commercia Profit/Losswithout Subsidies (Rs.cr) -2922 -976 -1731 2468 412 .1766 -2268 -26013 OutstandingduestoCPSUsatend-Mar2001(Rs.cr)(c) 628 1,167(d) 744 517 1237 831 4045 27760 Subsidies Total Subsidies (Rs.a) 2922 769.3 1806 745 0 1766 2268 36550 Agriculture (Rs.cr) 307 0 1284 843 27083 Domestic (Rs.cr) 0 0 668 1274 9466 Subsidiesesa%ofGSDP 2.2% 1.6% 1.8% 28% 0.0% 2.4% 12% 1.6% Notes: (a) Data on AlWlndia is for 1999/00, Rajastan is ftr 1999/00, and on an other states is for 20W01 (b) Maharashtra data relates to MSEB only (c) Central Power Sector Corporations (CPSUs) - REC, NTPC, NHPC, PGCIL, NEEPCO, DVC, NPC, PFC (d) tncludes Rs. 944 crore bonds issued to suppliers. Source: Gol, Planning Ccrmnission, Annual Report on the Working at SEBs & EDs, June 2001, SEB sourmes 36 Table A4.4 Maharashtra: Growth of InigaWad Aa (o '000 ha) by Source, 1960-61 to 2000-01 Soiircewise NMt Iigated Area la Not Growth Gros Gowth bIlga Grom Gros Inigatmd Yer WeIls Canals Othar Sourca bilgated Rate I aigted Rat IntensIty lb CpWed Area to) Grm Ara ( Area ) Area Cmpped Area 1960461 595 276 201 1072 1220 113.8 18823 6 5 (55.5) (25 7) (1.8) 19856 711 375 120 1206 125 1388 13.8 115.1 18979 7.3 (58.9) (31.1) (10.0) 1970-71 768 422 157 1347 11.7 1570 131 1166 18737 84 (57.0) (31.3) (11.7) 1975.78 1084 633 as 1802 33.8 2171 38.3 120.5 19664 11.0 (60.2) (35.1) (4.7) 198081 1055 718 62 1835 1.8 2415 11.2 131.6 20270 11.9 (57.5) (39.1) (3.4) 19885 1162 796 0 1958 6.7 2420 0.2 123 6 20261 11.9 (596) (40.7) (0.0) 18901 1672 982 17 2671 36.4 3319 37.1 124.3 21859 15 2 (626) (36.8) (0.6) 199506 (P) 1870 1111 0 2981 11.6 3550 7.0 119 1 21504 16.5 (627) (37.3) (0.0) 1990-97(P) 2059 1172 0 3231 8A 3769 62 116.7 21836 173 (63.7) (36.3) (0.0) 1997-8 (P) 1897 1202 0 3099 -4.1 3618 .4 0 116.7 21740 16.6 (61.2) (38.8) (0.0) 1995.99(P) 1904 1225 89 3218 3.8 3645 0.7 113.3 22155 16.5 (59.2) (38.1) (28) 1999-0 (P) 1408 1286 0 2686 -16.5 3374 -74 125.6 22351 5.1 (52.1) (47 9) (0 0) 2800 (P 1912 1298 0 3210 195 3647 8.1 113.6 22256 16.4 (59.6) (40.4) (0.0) NDts. (P) R nal /a Figues in bakts sosw share in Ne1 Igated Aea lb Iriegalton intensity is te raio of Gross igated Aea to Net mgated rea Swe: GMt of Ma h_sf IrrIaion Deparbent 37 Table A4.5 Maharashtra: Reglon-wise Growth of In1gated Area (in '000 he), 1978-79 to 1998-99 Net In1gaed Area (NIA)la Source-wise NLA In 1999-001b Gross Inigated Areak Regions 1978.9 1998-99 % Incmase Canals Tubewelis & Other 19779 1998-99 % Increase Other Wells Sources Vidarbha 430 642 49 328 255 59 505 794 57 Marathwada 473 713 51 180 533 0 574 895 56 Western Maharashtra 504 1048 108 530 518 0 649 1048 61 Konkan 31 55 77 10 15 30 33 63 91 Nolth Maharashtra 480 760 58 177 583 0 643 845 31 MAHARASHTRA 1918 3218 68 1225 1904 89 2404 3645 52 Source: Govt of Maharashba Irgaton Deparment Table A4.6 Maharashtra: irrigation Potential Created and Utilized (in million hectares) Major and Medium Projects State Minor Irrigation* Year Potential Potental Potential Percentage Potential Potental Potential Percentage Created Utlized Gap Ulkation Created Utlized Gap Utllizaton 1985-86 1.68 0.66 1.02 39.05 0.59 0.14 0.45 23.73 1986-87 1.73 0.67 1.06 38.67 0.60 0.14 0.47 22.59 1987-88 1.77 0.66 1.11 37.09 0.62 0.13 0.49 20.45 1988-89 1.82 0.77 1.05 42.21 0.64 0.13 0.51 20.94 1989-90 1.89 0.76 1.13 40.44 0.67 0.18 0.49 26.28 1990-91 1.94 0.82 1.13 42.10 0.69 0.16 0.52 23.87 1991.92 1.96 0.93 1.02 47.62 0.71 0.18 0.53 25.71 1992.93 2.00 0.81 1.18 40.70 0.72 0.15 0.57 20.50 1993-94 2.05 0.96 1.08 47.07' 0.75 0.14 0.61 18.16 1994-95 2.25 1.03 1.22 45.93 0.72 0.16 0.56 22.24 1995-96 2.31 0.96 1.35 41.39 0.74 0.16 0.59 20.92 1996 97 2.38 1.00 1.38 41.96 0.72 0.17 0.55 23.99 1997-98 2.47 1.03 1.43 41.93 0.76 0.17 0.59 22.05 1998-99 2.63 1.01 1.62 38.37 0.78 0.22 0.57 27.42 199940 2.67 1.07 1.59 40.30 0.84 0.21 0.62 25.39 2000-01 2.81 1.06 1.76 37.50 0.89 0.24 0.65 27.21 * Including Lift Irrigation Schemes Source: GovL of Maharashtra, Irmgation Department 38 Table A4.7 Mah.thmb: WicnllO. Dbposi Co4por4n, . Debt0 Sw5 g Module (Rs"= I:unwtpft.) R-0- OUMWAbv Rqr-~~~d WWI& Bleak 21.02 ZDO5 2D 2D034 2005 - 2DU .7 20D 200s64s M0.10 2018. 2011.12 2012-1 2013-i4 204-15 2015-IS T*6l 104.Iw. 4915,01 P S 3711 5433 14051I 318S 11711 43232 132 GO0 2700 ODD 020 02 0 020 020 020 334801 WB46m 545 2 1916 4301 207S5 1616 3875o 020 02o0 7271 2oo oo0 0 20 oo0 0o2 020 250925 TOW6 58303 106149 6840a4 s2020 1398 20W87 1327 020 9871 oo0 o02 oo0 oo0 020 0o0 860726 OId.6Iu 1269432 P o 00 00 34502 11318 02o 32066 22 90 0o2 ooo S01 02o0 02o0 020 020 6794 121942 b t 164 44 1653 154 70 10751 10111 63.65 595 32045 30D45 W0a 917 917 917 917 917 97802 TdOW 16444 16352 50088 ZZf 10o11 32s66 20459 3045 3045 11206 917 917 917 917 7711 219744 Massa 212 P 00w 2067 9032 o0D as01 oo0 020 oo0 020 020 00 02 o 020 00o 02o 212ss bb ss20 2s 2 501 2s6s u4a 4a o020 0o0 020 00) 02oo 0 020 02o0 o0o 02 02O 10795 TOW 20695 .53 12371 1I46 9154 020 a 020 020 020 02 OOD2 0O 0 20 00 0 20 32020 TY4 74au1 P1O 0a9 020 24101 oo0 020 197 7 13244 0o2 o02 0 1 3 o 00 02o0 oo 4471 020 74620 6b64 101.32 10632 9550 6747 6747 6747 40.79 23s32 356 232s 604 603 6034 63 00 O 6DM1s T?OW 10132 10133 33e51 8747 6747 26S19 17n2 23,56 23.18 155.74 694 603 604 5074 020 135421 Gal. 101574 p 00 020 2oo 20602 21716 21717 14832 020 020 17619 0o 0 020 020 000 2016 107547 b_64 U64.41 1441 14941 11842 10920 9131 2087 31a2 3120 3120 70s 701 765 7B5 705 9411S TOWl 14941 16 4a41 37 44 32636 3034B 1993s 3110 312 20656 70s 715 765 715 6603 201719 Tid 7nn33 P 9 37981 57n20 20919 62010 147242 115402 51693 oo0 2700 48668 t 0 020 020 44 71 126.12 720 1s kkee. 914 O 6 01720D 562053 45092 6106B 0s354 0530 15801 5530 2330 5 2322 20S 23305 1702 517322 low 1034 1e5286 20347 7 120203 63W434 196420 0117 05130 10501 20492 2205 320 23 06 6776 14314 123774 Table A4.8 Maharashtra: Cotton Procurement Scheme Year Market Price Gol Support Price MSP paid by GoM Raw Cotton Procured Profit I Loss *Deflcit (RsiQuintal) (RsJOuintal) (Rs./Quintal) (Lakh Quintals) (Rs. Crore) 1995-96 1545.64 1193.93 1938.34 131.03 *514.00 1996-97 1694.24 1231.58 1946.24 149.89 *377.00 1997-98 1688.14 1299.67 1918.41 88.35 *203.00 1998-99 1428.68 1425.28 1945.32 120.56 *623.00 1999-00- - 1615.53 1543.31 2054.64 176.03 *773.00 200D-01 (Pray) 1493.49 1625.00 2091.99 74.55 *446 Note: Losses are calculated as: Quantity Procured x (Gol's MSP pnce - Market price) Soune: GoM, Maharashtra Cotton Marteting Federardon 39 Table A5.1 Basic Education Indicators for Classes I - V, 14 Major Indian States, 1999-00 State Enrolment Ratio (%) Drop-out Rate (%) Male Female Total Male Female Total Andhra Pradesh 105.21 101.39 103.32 39.62 41.23 40.28 Bihar 94.51 61.46 78.56 56.50 58.64 57.27 Gujarat 124.54 101.43 113.38 30.51 28.10 29.49 Haryana 81.22 82.98 82.04 16.09 12.78 14.57 Kamataka 112.83 105.87 109.39 30.32 27.19 28.87 Kerala 85.80 84.74 85.28 -9.03 -5.00 -7.05 Madhya Pradesh 126.53 102.94 115.03 16.02 22.97 19.03 Maharashtra 115.80 112.32 114.10 18.99 21.72 20.29 Orssa 125.70 91.48 108.84 27.87 44.38 36.12 Punjab 79.91 81.71 80.75 24.57 20.15 22.49 Rajasthan 137.61 83.81 111.92 46.00 62.68 52.53 Tamilnadu 102.75 98.62 100.73 42.70 39.19 41.10 Uttar Pradesh 78.43 50.18 64.96 53.11 62.16 56.64 West Bengal 105.35 94.86 100.19 49.85 58.48 54.07 All India 104.08 85.18 94.90 36.87 42.28 40.25 Notes: Data is provisional Soure: Ministry of Human Resource Development, Annual Report 1998-99 Table A5.2 State-wise GSDP (Rs Billion) Saes 199041 1991-92 199243 1993.94 1994.95 1995.6 1996497 1997498 1998M 9 1999-00 20 1 ltL~ Anch2Praduesh 354.04 43182 471.49 578.67 689.23 798.54 901.47 957.82 1,130.91 1.217.03 1,36360 Blhar 279.33 311.99 337.30 390.25 44184 446.38 537.12 605.14 662.53 720.84 794.98 Gujauat 303.94 332.56 437.69 489.90 636.24 721.82 864.14 . 929.68 1,054.43 1.076.06 8 1,19631 Hayana 143.98 17251 183.12 216.65 257.21 292.16 350.22 377.89 429.41 471U84 53272 Kwntat'sa 250.21 323.13 354.75 410.64 479.02 56Z01 655.85 716.85 ,=85Z66 94991 1,089.30 Kterea 164.83 204.96 233.10 263.26 318.77 387.62 444.60 494.84 56436 647.92 74.68 Madhya Pradeh 360.08 385.33 432.28 527.52 586.11 658.00 753.45 810.2 907.37 1,026.72 1.14.54 UMaamBshI 67Z78 762.82 910.41 1,133.20 1,300.73 1.578.18 1,.M15 1,946.02 Z131.47 Z414.10 2.58272 Orissa 113.97 146.46 158.22 18213 217.34 265.73 260.01 316.75 345.79 380.14 425.11 Punjab 183.99 22257 256.02 30Z50 340.95 385.14 441.63 483.88 54414 827.00 708.25 RPa4ian 239.63 266.26 312.95 330.18 415.33 473.64 575.34 640.35 728.94 750.57 844.87 Tamnl Nadu 347.38 409.64 476.74 574.82 687.53 784.86 894.93 1,036.54 1,190.80 1,314.51 1,49844 UttarPradesh 611.44 71Z47 778.87 875.55 1,021.37 1,157.43 1,381.29 1,481.75 1.707.80 1,87.42 Z119.13 WestBenga 375.23 435.43 486.81 534.14 620.11 738.32 82027 979.66 1.157.19 1.33211 15i5272 14M1orStaSte 4,40.82 5,117.94 5,8D9.76 6,809.40 8,011.79 9,249.84 10,653.47 11,777.59 13,408.01 14,805.18 16599.87 Source: GSDP - GoM, Depatnet of Econots & Stahttcs hfr Maharshtn. amd CSO for the rest of te states, for the period 1990-91 to 1999.00; Staff Estmafas for 260041 and 2001.02 40 Table A5.3 State-wise Public Spending In Medical and Public Health and Family Welfre (a) (As % of GSDP) states 199041 1991-92 199243 1993-94 1994-g5 1995-96 1996.97 1997-98 1990-99 199940 20001 RLE Andtra Pradesh 0.9 0.9 0 9 0.9 0 8 0.8 0.9 0.9 0.9 1.0 0 9 Bihar (b) 1.2 1.4 1 2 1.2 1.2 1.5 0 9 0 9 0.9 1.4 1.3 OuJarat 0.8 0.9 0.7 0.7 0.7 0.7 0.6 0.7 0 8 0.9 0.8 HaryKna 0.6 0.6 0.7 0 5 0.6 0.6 0.5 0.6 0.7 0.6 0.6 KarnataBa 1.0 0.9 1.0 1.0 1 0 0.9 0.8 1.0 1.0 1.0 1.0 Kerala 1.3 1.1 I 0 1.1 11 1.1 1.0 1.0 1.0 1.1 0.9 fahmeshtra 0.7 0.7 0.7 0.6 0 6 0.6 0.6 0.6 0 6 0.6 0.6 adhyaPradesh b) 0.8 0.8 0.8 0 8 0.8 0 7 0 8 0.8 0.9 0.9 0.8 Ordsa 1.2 1.2 1.1 1.1 1.1 1.0 1.1 1.0 1.2 1.1 1.2 Punjab 0 9 0.9 0.8 0.8 0.7 0.7 0.7 0.8 1.0 0.9 1.1 Rajsahan 1.1 1.1 1.1 1.2 1.2 1.2 1.1 1.1 1.2 1.2 1.1 TamD Nadu 1.1 1.1 11 1.0 0.9 0.9 0 9 0 9 1.0 0.9 0.8 Utar Pradesh (b) 1.1 1.0 1.0 1 1 0.9 0.9 0.9 1.0 0 8 0.7 0.7 West Bengal 12 0.9 1.0 10 0.9 0.9 0.9 0 8 1.0 1.7 1.7 14 Sta 1.0 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.9 1.0 0.9 Notels (a) Rapesents revenue expendture and capital oubay (grosv lending net of recevery has not been induded) (b) As CMey existed before the creation of Utltarachal, Clihattisgari aend .ahn Source: Expenntteres on Hearlh - RBI, RBI Butetns on State Finances, various Mmes GSDP - GoMA, Department Econfrnics & Statuilrs for Maharash, and CSO for the rest of the states, for the penod 1990-91 to 199940 Stalf Estmates fosr 200O-01 Table A5.4 Social Indicators In Selected States staltes UnIt Year All India Mahareshtra Gujarat Tamil Nadu Andhra Karnataxa Madhya Pradesh Pradesh (a) Per Capita lncore Rs. in1993-94 Prices 1999-00 11,401 17,160 15,545 14,136 10,487 12,271 8,677 InftanMortarly Rata Per'J0 LUve Births 1998-99 70 48 63 52 66 58 90 Total FermityRate bf) PerWoman 199899 2.27 Z24 2.33 Z11 2.07 1.89 261 uatnution underAge 3 (c) % 1998-99 47 50 45 37 38 44 55 OierefUteracy % 2000-01 65.38 77.27 69.97 73.47 61.11 67.04 6411 Feniale teracy % 2000-01 54.28 67.51 58 60 64.55 51.17 57.45 50.28 Grmss Enrolment RatBs (Class PV) % 1999-00 58.79 88 80 64.89 86.89 47.65 65.67 62 56 GrossDrop-csrtRaefs(Classl-V) % 1999-00 40.25 20.29 2949 41.10 40.28 2887 19.03 Notes: (a) As it existed bfore he creation of chhaftigarh (b) Nurnber of children a woman would bear duiing her reptrductver years (15-49) if she were to experence the age-specific ftility rates prevaling at the time of the survey (c) Mainutbton amorng children under ag 3 yearm is based on weight-fr-age index of nubtibone status, and represents percentage of children in that age group who fell behw -2 standard deviabon uits from the median of the International Reference Population. Source: Per Capita Income - GDP fron CSO (Gol), GSDP for Maharashera brn Deparmnent of Economics & Stabstics (GoM), and for other states frni CSO (Gol), Population from Census 2001; Infant Mcrtality Rate - Regstrar General of India, Sample Regisretion System, Apri 2001; Total Fertilty Rate and Malnutiton under Age 3 - National Family Healh Survey 1998-99; Overall Litercay and Fernale Uaeracy - Census 2001; Grss Enriment Rate and Gross Drop-Out Rate - Gol, Ministry of Human Resource Developnent, Annual Report 20001 41 A Workshop on Managing Government Budget to Facilitate Economic Growth and Reduce Poverty Program Tuesday, October 30th , 2001 at Sahyadri Guest House, Mumbai. Organized by Finance Department, Government of Maharashtra and World Bank 42 Workshop Registration: 8:30 - 9:00 a.m. Opening Remarks 9:00 - 9:15 a.m. By: Mr. Jayant Patil, Minister of Finance Government of Maharashtra. Session I 9:15 - 10:45 a.m. Managing Government Budget to Facilitate Economic Growth and Reduce Poverty. This session will discuss the principles of public budget management and lessons from experience in applying them. More specifically, it will highlight how the public sector in general and the public budget in particular can help in creating the enabling environment to facilitate the private sector led growth process; and protect those who are poor and genuinely need help from the government. A framework to assess the public budget will be discussed and it will be shown how economic analysis can be applied to the rationale for public spending, the choice of instruments (public provision vs. subsidy vs. regulation) and deciding among competing demands for public resources. The process to improve budgetary management will also be discussed. These thematic discussions will be supplemented by experiences of a range of developing and developed countries. Chair: Mr.Jayant Patil, Minister of Finance, GoM Speaker: Mr.Vinaya Swaroop, Lead Economist, World Bank. Commentator: Mr.Saumitra Chaudhari, Chief Economist, ICRA Coffee Break 10:45 - 11:00 a.m. Session II 11:00 a.m. - 12:30 p.m.. The Making of the Public Budget in Maharashtra: Past, Present and Future. This session will discuss the process of budget planning, execution and management in Maharashtra. In laying out the past experiences, both the strong and the weak points of the budget system will be noted. Topics would include: level and composition of public spending (including information on off-budget spending); tax and non-tax instruments as well as public borrowing (including off-budget); deficits and modes of financing; fiscal transparency and accountability. Based on GoM's reform initiatives (including the GoM's white paper on state finances and the report on fiscal transparency), an outline of a state fiscal reform process will be presented. Chair: Mr. Madhav Godbole, Former Principal Secretary (Finance), GoM Speaker: Mr.Jatinder Sahni, Secretary (Reforms), Finance Department, GoM Commentator: Prof. Amaresh Bagchi, Professor Emeritus (NIPFP, Delhi) 43 Lunch Break 12:30 - 2:00p.m. Session III 2:00 - 3:30 p.m. State Finances in India: Lessons from Experience. This session will discuss the fiscal reforms that are taking place in states such as Karnataka (AP, Orissia, UP, Rajasthan). In particular, the presentation will focus on real v. "cosmetic" reforms, the conditions required for reforms to succeed, and what to do when those conditions do not hold. Chair: Prof. Amaresh Bagchi, Professor Emeritus, NIPFP Speaker: Mr.Stephen Howes, Senior Economist, World Bank. Commentator: Mr. Subhash Khuntia, Secretary (PMU & Resources), GoK. Coffee Break. 3:30 - 3:45p.m. Session IV 3:45 - 5:15 p.m. Fiscal in Maharashtra: Issues and Options. In this session an outline of the proposed study on state finances in Maharashtra will be presented (while recognizing the earlier efforts in terms of GoM's White Paper, ongoing NIPFP study, etc) by the World Bank. The objective of the session will be to seek guidance from the participants on the proposed study. In light of the comments received, the outline will be revised and the study will be carried out in partnership with the GoM. Chair: Mr.V.Ranganathan, Chief Secretary, GoM Speaker: Ms. Paramita Dasgupta, Economist, World Bank. Commentators: Ashoke Basak, Addnl Chief Secretary (Home), GoM 44 A Workshop on Strategic Economic and Social Issues in Maharashtra (Organized by the Government of Maharashtra and the World Bank) Friday, February 8, 2002 Draft Program Opening Remarks 9:00 - 9:15 a.m. By: Shri Jayant Patil; Finance Minister, Government of Maharashtra (GoM). Session I 9:15 - 10:45 a.m. Mahrashtra's Medium-Term Fiscal Program (MTFRP). This session will discuss the GoM's medium-term strategy to counter the current fiscal crisis. The presentation will examnine the State's evolving fiscal situation in the 1990s and make an analytical assessment of the proposed MTFRP. The session will discuss and debate if the reform options outlined in the MTFRP can be strengthened. Chair: Mr. Jayant Patil, Finance Minister, GoM Speaker: Mr. Deepak Mishra, Economist, World Bank. Commentator: Mr. Jatinder Sahni, Secretary Finance, GoM. Coffee Break. 10:45 - 11:00 a.m. Session II 11:00 a.m. - 12:30 p.m. Cost of Subsidies in terms of Opportunities Foregone. This session will look into the issue of subsidies in four areas: cotton, irrigation, power and sugar. Issues to be discussed include the pattern of subsidies in the last five years, intended vs. actual beneficiaries, and the cost of subsidies in terms of foregone opportunities. Chair: Mr. Anupam Dasgupta, Principal Finance Secretary, GoM. SReaker: Mr. Vinaya Swaroop, Lead Economist, World Bank. Commentators: Mr. Rajiv Agarwal, Secretary Co-Operatives; Mr. Shrikant Shukla, Secretary, Irrigation. Lunch Break. 12:30 - 2:00 p.m. 45 Session m 2:00 - 3:30 p.m. Civil Service Wage Bill: Restoring to the Steady-State Sustainable Level. The civil service wage bill has been an important factor contribution to the current fiscal crisis in Maharashtra. How can it been contained to ensure other important elements of the budget are not crowded-out? Is the GoM's reform program in this area strong enough to restore the civil service wage bill to its regular steady-state sustainable path? The presentation will focus on the reform program outlined in the MTFRP and examine if the conditions required for reforms to succeed would hold. Chair: Mr. Vinaya Swaroop,Lead Economist, World Bank. Speaker: Ms. Paranita Dasgupta, Economist, World Bank. Commentator: Ms. Chitkala Zutshi, Expenditure Secretary, GoM. Coffee Break. 3:30 - 3:45 p.m. Session IV 3:45 - 5:15 p.m. Power Sector: Major Issues and Reform Options. Like in most reforming Indian States, power sector reforms are extremely crucial for Maharashtra to be able to regain its fiscally prudent status. Despite the worsening situation in the sector, GoM has not adopted an aggressive reform strategy. The objective of the session will be to discuss the costs of not reforming the sector. Chair: Mr. Ravi Budhiraja, Principal Secretary Energy, GoM. Speaker: Mr. Marc Heitner, Lead Energy Specialist, World Bank. Commentator: Mr. Vinay Bansal, Chairman, MSEB. Note: The role of a commentator is not to formally prepare comments (there won't be formal papers) but to give him/her a chance to lead off the discussion after presentation. 46 Maharashtra: Reorienting Government Budget to Facilitate Growth and Reduce Poverty A Dissemination workshop (Organized jointly by NIPFP and the World Bank) NIPFP Auditoriurn, New Delhi Wednesday, October 23, 2002 Agenda Opening Remarks 10:00 - 10:15 a.m. By: Dr.Amaresh Bagchi, Professor Emeritus, NIPFP Session I 10:15 - 11:30 a.m. Report on Maharashtra's state finances. In this session, the World Bank team will make a brief presentation on the main findings of the report on "Maharashtra: Reorienting Government Budget to Facilitate Growth and Reduce Poverty". Chair: Dr.Amaresh Bagchi, Professor Emeritus, NIPFP Speaker: Mr. Vinaya Swaroop, Lead Economist, World Bank. Discussants: Dr.Ranjit Banerji, Dept of Expenditure, GoI Dr.Saumitra Chaudhari, Chief Economist, ICRA Coffee Break. 11:30 - 11:45 a.m. Session II 11:45 a.m. - 1:00 p.m. Government of Maharashtra's Reform Program. In this session, GoM will make a presentation on the range of reforms initiated, underway and/or being planned to restore the state's fiscal health and to accelerate economic growth, reduce poverty and regain Maharashtra's leadership position in the country. Chair: Dr.D.K.Shrivastava, Senior Faculty Member, NIPFP Speaker: Mr.Jayant Patil, Finance Minister, Government of Maharashtra Discussants: Dr.Sanjaya Baru, Editor, Financial Express Dr.Suman Bery, Director General, NCAER Lunch. 1:00 - 2:30 p.m. 47 A Dissemination workshop (Organized jointly by the MEDC and the World Bank) Y B Chavan Auditorium, Mumbai Thursday, October 24, 2002 Agenda 2.30 - 2.45 pm: Welcome by MEDC President Mr.M N Chaini 2.45 - 4.00 pm: Session I - Presentation by the World Bank Report on Maharashtra's state finances. In this session, the World Bank team will make a brief presentation on the main findings of the report on "Maharashtra: Reorienting Government Budget to Facilitate Growth and Reduce Poverty". Chair: Mr.Jayant Patil, Finance Minister, Government of Maharashtra (GoM) Speaker: Mr. Vinaya Swaroop, Lead Economist, World Bank. Discussants: Dr.M.R.Nair, Director, DEAP, Reserve Bank of India 4.00 - 4.15 pm: Coffee Break 4.15 - 5.30 pm: Session II - Presentation by Finance Department, Govt of Maharashtra Government of Maharashtra 's Reform Program. In this session, GoM will make a presentation on the range of reforms initiated, underway and/or being planned to restore the state's fiscal health and to accelerate economic growth, reduce poverty and regain Maharashtra's leadership position in the country. Chair: Mr.M.N.Chaini, MEDC President Speaker: Mr.Jayant Patil, Finance Minister, Government of Maharashtra (GoM) Discussants: Dr.Ajit Ranade, Chief Economist, ABN Amro Bank 48 A Dissemination workshop (Organized jointly by Yashda and the World Bank) Yeshwantrao Chavan Academy for Development Administration (Yashda), Pune Friday, October 25, 2002 Agenda ODenin2 Remarks 10:00 - 10:15 a.m. By: Mr.Devendra Nath, Dy.Director General, Yashda Session I 10:15 - 11:30 a.m. Report on Maharashtra's state finances. In this session, the World Bank team will make a brief presentation on the main findings of the report on "Maharashtra: Reorienting Government Budget to Facilitate Growth and Reduce Poverty". Chair: Mr.Umesh Chandra Sarangi, Divisional Commissioner, Pune Speaker: Mr. Vinaya Swaroop, Lead Economist, World Bank. Discussants: Dr.V. S. Chitre, Director, Gokhale Institute of Politics & Economics Dr.A.R.Narayanamoorthy, Professor, Gokhale Institute of Politics & Economics Coffee Break. 11:30 - 11:45 a.m. Session II 11:45 a.m. - 1:00 p.m. Government of Maharashtra's Reform Program. In this session, GoM will make a presentation on the range of reforms initiated, underway and/or being planned to restore the state's fiscal health and to accelerate economic growth, reduce poverty and regain Maharashtra's leadership position in the country. Chair: Mr.Baldeo Singh, Director Social Welfare, Govt. of Maharashtra Speaker: Mr.Jatinder Sahni, Secretary, Finance Department, Government of Maharashtra Discussants: Smt.Manjali Sathe, Head of Department, Poona University Dr.M A Ghare, Head, AFARM (Action for Renewal of Agriculture) Lunch. 1:00 - 2:30 p.m. 49 A Dissemination workshop (Organized jointly by the University of Nagpur and the World Bank) Hotel Center Point, Nagpur Monday, October 28, 2002 Agenda 2.30 - 2.35 pm: Welcome by Dr.Anjali Kulkarni, Head, Dept of Economics, University of Nagpur 2.35 - 2.45 pm: Opening remarks by Dr.Arun Satputale, Vice Chancellor Nagpur University Dr.Shailesh Kumar Sharma, Divisional Commissioner, Nagpur Session I 2.45 - 4.00 pm Report on Maharashtra's state finances. In this session, the World Bank team will make a brief presentation on the main findings of the report on "Maharashtra: Reorienting Government Budget to Facilitate Growth and Reduce Poverty". Chair: Mr.Neelu Chaudhari, Ex District Governor, Rotary International Speaker: Mr. Vinaya Swaroop, Lead Economist, World Bank Discussants: Dr.V M Vaidya, Ex-Professor & Head, Dept of Economics, Nagpur Univ. Mr. B. Shriniwas, General Manager, Reserve Bank of India Coffee Break. 4.00 - 4.15 pm Session II 4.15 - 5.30 pm Government of Maharashtra's Reforn Program. In this session, GoM will make a presentation on the range of reforns initiated, underway and/or being planned to restore the state's fiscal health and to accelerate economic growth, reduce poverty and regain Maharashtra's leadership position in the country. Chair: Mr.J.K.Jain, Sr.Vice-President, Indorama Speaker: Mr.Jatinder Sahni, Secretary Finance, Government of Maharashtra Discussants: Mr.Madhukar Kinunatkar, Member VSDB Mr.S V Khandewale, Ex-Director, Dept of Business Management Refreshments 5.30 - 6.00 pm