Maharashtra Cabinet Approves ₹24,702 Crore Jalna-Nanded Expressway Project Amid Growing Fiscal Deficit.

The Maharashtra Cabinet approved the ₹24,702.92 crore Jalna-Nanded expressway project on Thursday, which will connect to the Mumbai-Nagpur Samruddhi expressway. This decision comes as the state Finance Department has raised concerns about maintaining the fiscal deficit within 3 percent of the gross state domestic product (GSDP).

The Finance Department noted that the fiscal deficit has already surpassed ₹2 lakh crore due to various welfare and development schemes, as well as supplementary demands totaling ₹1 lakh crore. While this figure remains within the 3 percent GSDP limit, officials urged the government to implement measures to manage the financial situation effectively.

According to the Finance Department's remarks, the debt-equity ratio for the project has been set at 52.81:47.19, with a fiscal policy deficit fixed at 2.59 percent of GSDP. The state will need to secure loans to fund social and welfare initiatives, as well as to complete ongoing infrastructure projects. There are concerns that these additional borrowings could push the fiscal deficit beyond the acceptable threshold.

"The project should be financially planned to ensure there is no burden on the state," the Finance Department advised, to which the Public Works Department (PWD) responded that they would consider this recommendation.

The Jalna-Nanded expressway is expected to reduce the current distance between the two cities from 226 km to approximately 181 km, cutting travel time from four hours to about two hours. A special-purpose vehicle has also been established for this project.

The Finance Department has consistently warned about the potential strain on the state treasury due to the financial pressures of ongoing welfare schemes and infrastructure loans. Recently, in a proposal regarding the construction of sports complexes, the department highlighted that the Maharashtra government is experiencing significant financial strain, which limits its ability to take on new liabilities.

ET