(This story originally appeared in on Dec 27, 2014)

NASHIK: Chief minister Devendra Fadnavis on Friday said the state was facing an acute financial crunch and feared that his government might be compelled to take loans to pay the salaries of its employees.Addressing a convention of the employees' union of three state electricity companies in Nashik, Fadnavis said, "The state is reeling from an acute financial crunch. The financial crisis was handed over to the present government by its predecessor. We are trying to find ways to come out of it. It is a difficult situation. We are trying our best, but we fear the government may have to take a loan to clear the salaries of it employees."The chief minister said the state's coffers were not only empty but in fact there was a loan worth Rs 3.5 lakh crore that the present government inherited from its predecessor. "The finance minister and all of us are discussing the ways and means to steer the government out of the situation. We are looking for solutions and the process has started," he added.On the employees' pension scheme to the electricity company employees, the chief minister stopped short of announcing any relief. "The issue of pension for the employees is a long pending one and considering the developments during the past decade, the government is looking for the solution of it as well," Fadnavis said, but did not commit anything concrete.Earlier this month, the chief minister said that Maharashtra at present had advances of Rs 3,25,000 crore and a revenue deficit of Rs 26,000 crore.