The analysis of Fiscal policy in Maharashtra Introduction:

The research is concerned with analyzing the trends, levels and composition of public expenditure by the state of Maharashtra in the social and economic sectors. Maharashtra, being one of the most industrialized states in India, demands attention towards its fiscal policies as well as governance. Maharashtra accounted for nearly 18.9% in terms of industrial output to GDP in 2005-06 but has deteriorated since to nearly half in 2013. Under these circumstances, it is imperial to study the constituents of the fiscal policy in Maharashtra which inevitably affect human development. Literature review: Since the research concerns with budget analysis over a certain time period, it is essential to know the basis of budgeting. A few articles helped enlightening the role of efficient budgeting in any government. The booklet Essentials of the Budget Process of the State Government by S.S Karnik describes the process of efficient budget as followed by the state governments. It is necessary to formulate basic in terms of budgeting because it can vastly affect the growth and development of not just the economy but the society as well. The booklet brings out that, normally, capital expenditure is expected to be met out of borrowed funds and accumulated cash balances including surplus revenues of previous years. The recent experience shows that this is far from true. All State Governments as also the Centre are running large deficits on revenue account. Surpluses on capital account are used to finance these deficits! Governments are borrowing even to meet revenue expenditure. Capital expenditures which are being financed from borrowed capital are, in most cases, not expected to give returns which would be adequate to service the loans. Thus the whole context in which budgets are framed has undergone a qualitative change. The budget is supposed to present a complete and correct picture of the financial position of government. In practice, this is not necessarily true. In keeping with the changing times, it is now necessary to look at some aspects which have so far been glossed over in formulation of the budget. One of these relates to the contingent liabilities of the State Government such as guarantees given by the State Government for the repayment of loan and payment of interest by entities such as co-operative sugar factories, co-operative spinning mills, state sector enterprises and so on. Objectives: to generate a comparable time series of allocation by the government of maharashta to analyze the trends in allocation across selected sections. Sectors and schemes between 1960-161 and 2011-12 to theoretically connect these allocation to the existing literature on state expenditure and gauge its efficiency

methodology and tools the methodology will be quantitative in nature. The methodology will focus on the levels and compositon of public expenditure towards different sectors and sections at the state level. This will be done by classifying the budget into various ratios as given by the human development report 1991 these ratios are: social allocation ratio: the share of public expenditure earmarked for the social sector public expenditure ratio: the share of state domestic product that is marked for public expenditure social priority ratio: the share of social sector expenditure earmarked for human priority areas human expenditure ratio: the share of state domestic product devoted to human priority areas literature reviewf