“The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.”

This concern for Maharashtra has adequately reflected in the Union budget 2023-24, the last full-fledged budget of the present government as it will have to present a vote on account in February 2024 in view of the impending Lok Sabha election. The Maharashtra legislative assembly election will soon follow in October. Keeping various such relevant considerations before, the Modi government has adopted a somewhat liberal attitude towards Maharashtra financially. Although it appears to pale when compared with the slices granted to Uttar Pradesh and Bihar, actual allocations will be known only after full budget papers are available.

Maharashtra deputy chief minister Devendra Fadnavis, who also holds the finance portfolio, expects that the state government will receive around Rs. 15000 crore as interest-free infrastructure funds from the Centre. The budget has allocated over Rs.10 lakh crore for infrastructure development for the country. Out of this, the Centre has promised Rs.1.30 lakh crore as interest-free funds for states. Maharashtra will receive a higher allocation of these funds, nearly 10 percent of the total provision. This will boost the pace and scope of infrastructure projects in the state. Fadnavis has projected that the overall allocation will be higher on account of various welfare schemes whereby individual state-wise provisions will be announced soon. For instance, the budget has a provision for organic farming, covering one crore farmers. In this scheme, Maharashtra’s share will be almost one-fourth since organic farming has been carried out on more and more areas in the state. The Centre’s plan to promote organic farming will supplement the efforts underway in Maharashtra.

Nationalist Congress Party leader Ajit Pawar has said that the Union budget is “disappointing” for Maharashtra and that it has not offered anything special for Mumbai. Terming the budget as a chunavi jumla (election stunt), Pawar feels that the focus of the budget is the next election and it has been prepared with an eye on the ballot box. Pawar has pointed out that there is no mention of the promised two crore jobs. Just like ‘Make in India’ or ‘Aatmanirbhar Bharat’ were soon forgotten, it seems the hollow slogans in this year’s budget will also vanish into the thin air, Pawar has taunted. There are no concrete measures to reduce inflation or generate new employment. The NCP leader has taken the government to task for forgetting to reduce taxes on essential commodities. Criticism by other opposition leaders is more or less on similar lines. Swabhimani Shetkari Sanghatana president Raju Shetti, who was with the BJP till recently, has labelled budget promises as hollow, saying that they have nothing concrete for farmers. Although the emphasis on organic farming and developing the country into a millet hub appears good to hear, what about providing infrastructure for these experiments, he has asked.

Nevertheless, it needs to be noted that the budget has provided Uttar Pradesh with around 18 percent of the share of Union taxes, amounting to Rs.1,83,237 crore. The second highest on the chart is Bihar, which stands to receive Rs.1,02,737 crore. Madhya Pradesh and West Bengal are the next two states. With its share of 7.85 percent, MP will obtain Rs.80183 followed by West Bengal, which will gain Rs.76843 crore or around 7.52 percent of the allocation. Maharashtra and Rajasthan are next in the line, to receive Rs.64525 crore and Rs.61552 crore, respectively. As indicated by Fadnavis, this kitty will swell when provisions under other heads are added up.

An illustration is railway minister Ashwini Vaishnaw’s announcement that the record allocation of Rs.13539 crore from Indian Railways in the budget 2023-24 will be in Maharashtra, leading to a very good effect. Vaishnaw has explained that the allocation in 2023-24 for Maharashtra is eleven times the average allocation between 2009 and 2014. Other funds in conjunction with this allocation will flow into Maharashtra during the year, experts say.

Another major benefit granted by the Modi government has been to waive off tax on Fair and Remunerative Price (FRP) for sugarcane after 2016. With the exemption of tax before 2016 announced now, sugarcane factories in Maharashtra will be saved up to Rs.10000 crore, Fadnavis feels.

Fadnavis gave back the opposition in the same coin when he reminded previous governments in Maharashtra, led by the Congress, the NCP and the Shiv Sena (Maha Vikas Aghadi) under Uddhav Thackeray, that successive governments in Maharashtra had been trying to prevail upon the Centre to waive off the tax on FRP, but without success. This concession by the Centre will help the BJP in the state to consolidate its grasp in the sugar belt of western Maharashtra, the traditional bastion of the NCP and the Congress.

How spin-off benefits will occur is seen from the attention provided to the agriculture sector. The policy is not limited just to grant subsidies to farmers but it attempts to concentrate on building digital infrastructure, technology infusion and integration with the market. The budget is like a hidden mine. It will be up to the state governments to exploit it as much as possible. Modi has given the direction. It is hoped that Maharashtra will make the most of the opportunity.