Mumbai: The finance department of the Maharashtra government has issued a caution regarding overspending after the state recently announced a range of new welfare schemes and infrastructure projects. Since June 2024, the state’s fiscal deficit has nearly doubled, jumping from Rs 1.10 lakh crore to Rs 2.23 lakh crore. This significant increase is attributed to the string of projects implemented to bolster public welfare and infrastructure development.
The Maharashtra government has breached its fiscal deficit limit of 3 per cent of Gross State Domestic Product (GSDP), which currently stands at Rs 42.5 lakh crore. Despite exceeding the fiscal deficit limit of Rs 1.38 lakh crore as per the Fiscal Responsibility and Budget Management Act, the state continues to introduce new schemes, putting the state’s finances in jeopardy.
State-Funded Welfare Programs
Several state-funded programs are adding to the financial strain. The ‘Ladki Bahin’ welfare scheme, aimed at providing financial aid to women in the state, will cost Rs 4,600 crore. Likewise, the ‘Ladka Bhau’ scheme, which focuses on creating internships for unemployed men, will require an additional Rs 5,600 crore. Another major expense is the state’s provision of free electricity for agriculture pumps, which adds Rs 1,400 crore to the burden. In total, these schemes are expected to cost the government Rs 9,600 crore.
Other prominent programs include the Mukhyamantri Vayoshri Yojana, which is managed by the Department of Food and Civil Supplies. It provides three LPG cylinders per household to 52 lakh families in the state. The Girls Free Higher Education Scheme, run by the Department of Higher and Technical Education, costs the state Rs 2,000 crore annually. This initiative aims to improve accessibility to education for girls in Maharashtra.
The state’s energy department also introduced the Chief Minister Baliraja Power Concession worth Rs 14,716 crore, benefiting over 44 lakh farmers annually. Further, state-funded schemes such as the Chief Minister’s Pilgrimage Darshan Yojana and the Mukhyamantri Vayoshri Yojana continue to use a considerable amount of state funds.
Development Projects Initiated by the Government
The financial pressure on the state has also increased due to several infrastructure projects. These initiatives, many of which were launched by the Prime Minister, are expected to cost the state Rs 7,600 crore. The most notable projects include the upgrade of the Baba Saheb Ambedkar International Airport in Nagpur and the new integrated terminal at Shirdi Airport.
In addition to these, the Prime Minister laid the foundation for the Indian Institute of Skills in Mumbai and the Vidya Samiksha Kendra in Maharashtra. He also launched 10 government-run medical schools across cities like Mumbai, Nashik, Jalna, Amravati, Gadchiroli, and others, which are expected to enhance public healthcare infrastructure across the state.
The upgradation of the Baba Saheb Ambedkar International Airport alone will cost the state approximately Rs 7,000 crore and is expected to spur growth across various sectors, including manufacturing, aviation, tourism, logistics, and healthcare. The Shirdi Airport renovation, costing Rs 645 crore, will provide improved facilities to accommodate the thousands of tourists who visit the religious site annually.
The Financial Stress Ahead
While these development projects and welfare schemes will undoubtedly benefit public welfare, they place immense financial stress on the state’s treasury. If the state continues with its current trajectory of introducing more schemes and infrastructure projects without addressing the fiscal deficit, it risks putting itself in a financially precarious situation.
Maharashtra’s welfare schemes and infrastructure projects have led to a significant increase in the state’s fiscal deficit, raising concerns about the long-term financial stability of the government. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
