mumbai the state governments decision to announce a mega loan waiver for all sections of farmers regardless of the size of their land holdings is expected to hit development work hard the financial impact of this populist decision is expected to be huge government is likely to cut budgets for developmental schemes and projects by nearly 2025 and the wait for the implementation of the 7th pay commission for staff will be further pushed back said sources in the finance departmentgovernment is in the process of reviewing the ways in which the financial impact of this decision can be made bearable and it is without a doubt that the outlay of development projects will have to be cut in size said an official the state will need rs 15000 crore to implement the 7th pay commission and clear arrears from january 2016 the date when revised pay becomes effective there are nearly 19 lakh staff and the state requires an extra rs 5000 crore annually to keep revising their pay structures implementation of the 7th pay commission will be pushed back by at least a year government is not in a position to take that burden this year too said another official chief minister devendra fadnavis had also said on june 2 that a loan waiver will impact developmental works planned in the stategiven the sheer numbers the primary estimate is the debt writeoff will amount to a hit of rs 25000rs 27000 crore of 136 crore farmers in maharashtra 89 lakh have loans against their name and 34 lakh of them are defaulters marginal and small farmers solely dependent on farming and key beneficiaries of the governments largesse constitute nearly 80 of cultivators with loansthe state government is also in the process of working out a bank guarantee for a minimum amount against the unpaid loans to ensure that defaulting farmers can raise fresh loans for this years kharif season and all this at a time when the governments finances are virtually comatose the states debt exceeds rs 4 lakh crore funds for infrastructure and and other development are hard to find but finance minister sudhir mungantiwar is still projecting a brave front painting a picture of revival and looking for innovative ways to raise fundswe are expecting rs 18000 to 19000 crore from the central government for goods and services tax the department is pursuing a nontax revenue target higher than rs 26000 crore up from rs 16000 crore last fiscal said finance ministerapart from gst and nontax revenue government is also mulling use of a fund kept as a personal ledger account pla by other departments the amounts sanctioned to various departments and not spent is kept aside in their pla this quantum of amount would be rs 50000 to rs 60000 crore since 2012 said mungantiwar