Maharashtra set to be first State to have $1 trn economy

Mumbai: Even as the country's Prime Minister Narendra Modi is working towards taking the country's economy towards $5 trillion over next few years, the Maharashtra State's Budget for the new fiscal is inching towards taking the State's economy to $1 trillion.

Maharashtra deputy Chief Minister, Ajit Pawar, who also holds the finance post, announced in the State budget on Friday. He said that Maharashtra is headed towards being the first state that will have $1 trillion economies in the country. Maharashtra CM Uddhav Thackeray offered floral tributes at the statue of Chhatrapati Shivaji Maharaj at the Vidhan Bhavan ahead of the budget presentation.

The Budget will benefit 20 lakh farmers who paid loans on time to get Rs 50,000 incentive. Moreover, State plans to spend Rs 11,000 crore on health services in the next three years

Talking to Bizz Buzz, Subhankar Mitra, Managing Director, Advisory Services, Colliers India, says, "Maharashtra aspires to grow at 12.1 per cent in the fiscal year 22-23 with a hope of becoming the first State with a trillion-dollar economy. On the allocations side, there was a significant sum provisioned for the public works department to improve the infrastructure. There also increased allocation in upgrading public government schools and women's hospitals. The spending on infrastructure particularly in and around the urban areas would promote development and can augment the supply of affordable housing. There is also a separate fund allocation to improve the slums outside Mumbai, which will help many adjoining areas to have a better living quality."

An amount of Rs 20 crore has been kept aside for upgrading the cataract surgeries in the state. Moreover, a first class trauma care unit will be set up at Satara and other centres in the state. Each centre will have a capacity of 50 beds. Women's hospital will be set up at Sangli, Satara, Solapur, Kolhapur and each centre will have a capacity of 100 beds, whereas Rs 3,183 crore outlay has been provided for the public health and family welfare department.

Ajay Sharma, Managing Director, Valuation Services, Colliers India said, "The Panchasutri development model adopted focused on shoring healthcare, agriculture and infrastructure. If the investment being made across the State will spur growth in services economy while specific to real estate the provision of 6,000cr for 5 lakh units affordable housing scheme will positively Impact the segment."

Further on urban development front, funds to improve slum conditions outside Mumbai will push redevelopment programs and creation of innovation hubs can spur growth in new areas if implemented well. Pune metro expansion is likely to contribute real estate growth in south and south-western parts of the city while the increased connectivity of Mumbai metro will enhance urban livability and connectivity, he added.

Rs 2,061 crore will be for medical education department. Indrayani medicity is proposed on a 300-acre area outside Pune. To encourage innovation and start up culture, the state government has proposed to set up an innovation centre in each of the six Revenue circles of the State. An amount Rs 500 crore has been allocated in budget.

Rs 100 crore has been allocated for a music school dedicated to Lata Mangeshkar at Kalina campus of Mumbai University. Also, Shivaji University Kolhapur's Yashwantrao Chavan study centre to get Rs 1 crore.