Maharashtra Budget: How will Ajit Pawar balance between populist promises and financial reality?

Ajit Pawar is a politician from Maharashtra who has presented the state budget many times. Whether it is Uddhav Thackeray’s Maha Vikas Aghadi (MVA) government, Eknath Shinde’s Mahayuti 1 or Devendra Fadnavis’s Mahayuti 2, Ajit Pawar, who is currently in power, Ajit Pawar has always been handling the keys of the state treasury as Finance Minister. But this year’s budget is particularly challenging for him, because the financial situation of the state is colliding with the election promises of Mahayuti. Will the government announce to increase the assistance given to women under its ladki sister scheme? Its suspense will end by Monday afternoon.

The Ladki Bahin scheme proved to be a game-changer during the Maharashtra assembly elections and played an important role in Mahayuti’s return to power, but the scheme has made a huge impact on the state’s financial situation. The apprehensions expressed about this populist scheme of financial experts are proving to be correct. This scheme launched to attract women voters has affected other welfare schemes.

Will Shiva food plate plan stop?
Recently there was news that the government is considering stopping the Shiva food plate scheme. This scheme was started to provide nutritious food to the poor at a low cost during Uddhav Thackeray’s Chief Minister’s tenure. Under this scheme, the beneficiaries used to get full food at subsidized rate. In the budget, a decision can be taken regarding the future of this scheme. Similarly, there is also suspense to continue another plan Anandacha Sidha. Under this scheme, the poor were given special food kits for only ₹ 100 on occasions like Diwali, Ganesh Chaturthi, Ambedkar Jayanti and Ram Mandir Pran Pratishtha in Ayodhya. The Maharashtra government has spent ₹ 13,000 crore on both these schemes so far.

Recently, the Maharashtra government also stopped the plan to lay eggs to students under the mid-day meal scheme in government schools. The state government had allocated ₹ 50 crore for this scheme, but now schools have been asked to arrange public sponsorship to distribute eggs. The purpose of this scheme launched in November 2023 was to remove the deficiency of protein in children.

The absence of dues to the contractors of the state government also shows the deteriorating financial health of Maharashtra. Recently, many contractors and their employees went on strike to protest against non -payment of dues of ₹ 90,000 crore by many government departments.

Will the fiscal deficit increase more?
It is believed that Maharashtra’s fiscal deficit (fiscal deficit) can cross ₹ 2 lakh crore this year, which may have to reconsider its expenses and make it difficult to continue populist schemes.

A budget of ₹ 46,000 crore was already fixed under the Ladki Bahin scheme, which was increased to ₹ 14,000 crore in December. Under this scheme, financial assistance of ₹ 1,500 is given to women of financially weaker sections of 21 to 65 years. Before the election, Mahayuti had promised to increase it to ₹ 2,100, but it seems difficult to see Maharashtra’s Danwadol economy. However, in the government, NCP minister Aditi Takkare further increased the suspense and said that Mahayuti had never promised that this increase would be applicable in this financial year. Apart from this, millions of women have also been declared disqualified for this scheme in the last few months.