Mumbai, Sep 17: In a major push to reinforce Maharashtra’s fiscal health and support its long-term growth roadmap, Maharashtra Chief Minister Devendra Fadnavis announced the constitution of the Maharashtra Sustainable Public Finance Committee.

Headed by renowned economist and former Union Finance Secretary Dr Vijay Kelkar, the high-level panel, which was announced late Wednesday evening, is tasked with recommending measures to ensure sustainable growth in tax and non-tax revenues.

The decision forms an integral part of the state’s ‘Viksit Maharashtra @ 2047’ vision document, which outlines a strategic roadmap to scale the state’s economy to $1 trillion by 2030 and $5 trillion by 2047—coinciding with the centenary of India’s Independence.

The panel has been tasked with making recommendations to modernise the tax system, plug revenue leakages, and rationalise tax rates, fees, and exemptions; identify untapped revenue streams and maximise returns from public assets and state enterprises; streamline public spending while balancing expanding committed expenditures such as salaries, pensions, interest payments, and welfare schemes; and devise a fiscally responsible roadmap to reduce reliance on borrowings for infrastructure projects and budget deficits.

The Kelkar Committee comprises Prof Karthik Muralidharan (founder-director, CEGIS), Dr Nitin Kareer (former Chief Secretary, Maharashtra), T Rabi Sankar (former Deputy Governor, Reserve Bank of India) and Dr Ashima Goyal (President, The Indian Econometric Society).

The formation of the panel comes at a critical juncture for Maharashtra. While the state actively pursues an investment-led growth strategy across core sectors—including infrastructure, human resource development, water security, urban management, and energy transition—it faces growing fiscal constraints.

Maharashtra government’s Vision document has suggested restructuring the government expenditure policy to align with long-term capital formation, identifying alternative financing models and private capital inflows.

Fiscal deficit targets are capped within standard Fiscal Responsibility and Budget Management (FRBM) boundaries, targeting 2.8 per cent to 3.0 per cent of Gross State Domestic Product (GSDP) while keeping the revenue deficit under 0.7 per cent of GSDP, and implementation is tracked quarterly via a dedicated Vision Management Unit chaired by the chief minister.

Adhering to the targets set under the FRBM Act has proved challenging due to rising welfare commitments and debt servicing costs. Consequently, the government has frequently resorted to market borrowings to fund capital projects and offset short-term liquidity shortfalls.

The newly appointed Kelkar Committee is expected to deliver structural fiscal remedies to reverse this trend and secure long-term financial sustainability for the state.

New Delhi, Sep 17: As Prime Minister Narendra Modi on Thursday turned 76 with his tenure marked by expansion across India’s economy, financial inclusion, infrastructure and startup ecosystem.

Several key numbers highlight the scale of changes recorded during his time as prime minister. On of them is India’s real gross domestic product (GDP) which grew 7.8 per cent in the April-June quarter of fiscal 2026-27 with manufacturing and services supporting the expansion.

As per government data, real gross value added rose 8.2 per cent, while investment grew 11.9 per cent, household consumption increased 7.1 per cent and exports rose 12 per cent.

Apart from that, India’s nominal GDP is estimated at around $4.15 trillion that underscores the expansion of the world’s major emerging economy despite global trade and geopolitical uncertainties.

In addition, India’s foreign exchange reserves also rose to a record $785.7 billion in the week ended September 4, according to Reserve Bank of India data.

The reserves have increased for 10 consecutive weeks and surged nearly $120 billion over that period. Also, India is the world’s fourth-largest holder of foreign exchange reserves.

Moreover, the number of beneficiaries under the Pradhan Mantri Jan Dhan Yojana stood at 59.21 crore as of September 2, according to the government, while deposits in the accounts totalled Rs 3.17 lakh crore and 41.39 crore RuPay debit cards had been issued.

Women accounted for 32.98 crore accounts, while 46.03 crore beneficiaries were in rural and semi-urban areas, the official data said.

On the infrastructure front, the nation’s national highway network under PM Modi’s leadership has expanded to 146,572 km from 91,287 km in fiscal 2013-14.

The Economic Survey said average annual highway construction rose to 9,704 km during 2014-25, compared with 4,174 km during 2004-14.

Under his guidance, the number of startups recognised by the Department for Promotion of Industry and Internal Trade has risen to more than 2.47 lakh as of August 2026 from 502 in 2016

Meanwhile, Startup India rules have also increased the turnover threshold for startup recognition to Rs 200 crore, while DeepTech startups have a higher ceiling of Rs 300 crore.

New Delhi, Sep 16: The eighth Central Pay Commission is set to begin a three-day visit to Chandigarh on Wednesday, as part of its consultations on pay and pension-related matters.

The commission will hold meetings with civil service unions, pensioner groups and representatives of the regional administration till Friday.

The discussions are expected to focus on pay conditions and submissions from public sector stakeholders in northern India.

The eighth Central Pay Commission is led by former Supreme Court Justice Ranjana Prakash Desai while its members include Pankaj Jain, a former IAS officer serving as Member-Secretary, and Pulak Ghosh, a tenured Professor of Finance and a member of the Economic Advisory Council to the Prime Minister.

Representatives from Punjab, Haryana, Himachal Pradesh and Chandigarh are expected to submit their views on the pay and pension revision during the commission’s meetings.

Employee associations, pensioner groups and other stakeholder bodies, including those representing railway and defence personnel, will put forward their views before the panel.

The feedback gathered during these consultations will form part of the inputs considered while framing its recommendations.

The commission’s work could have a bearing on the financial interests of more than one crore employees and pensioners.

The affected population includes around 50 lakh Central government employees and about 65 lakh pensioners, covering defence and railway personnel as well as retirees.

Employee representatives are seeking a higher fitment factor, which would raise the base used to calculate salaries under the next pay revision.

Unions are also calling for changes to the Dearness Allowance (DA) framework, including more frequent revisions and a possible merger with basic pay after a specified threshold is reached.

Several submissions seek a review of house rent allowance (HRA), transport allowances and hardship-related payments, with demands for higher rates that take account rising costs in cities and difficult postings.

Pensioner organisations are seeking stronger safeguards for retirement income, enhanced family pension provisions and better healthcare support after retirement.

Employee bodies are also raising concerns over promotion structures, service conditions and the competitiveness of government compensation as part of efforts to sustain workforce morale and recruitment.

Under the timeline set out in its Terms of Reference, the commission has 18 months from its constitution on November 3, 2025, to submit its recommendations.