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

The budget document shows that the state’s debt projection of Rs 9.30 lakh crore  is higher by about Rs 2 lakh crore over the previous year (2024-25). Considering the state’s economic picture over the past decade, this burden will be almost tripled. Similarly, the fiscal deficit is estimated at 2.76 percent of the Gross State Domestic Product (GSDP). In consonance, the debt-to-GSDP ratio is 18.70 percent. Even though it will be within the prescribed 25 percent ceiling, the repayment of the debts will have to be paid special attention during the coming years.

The state economy’s gap between the revenue receipts and expenditure is estimated to be of around Rs 46000 crore. It will be an increase of over 200 percent as last year’s estimate of this deficit was of over Rs 20000 crore.

Pawar said the state leads in attracting foreign direct investment (FDI) inflows, which will generate largescale employment and contribute to India’s foreign currency deposits.

The launch of Maharashtra’s Technical Textile Mission is another major decision. The mission will enhance the manufacture of textiles that cater to diverse industries, including automotive, healthcare and defence.

Somehow, the Ladki Bahin Yojana has become the focal point of the opposition ammunition and the government defence. The budget has clearly signalled that the focus henceforth will be on continuing the existing welfare schemes. As a result, the government has not announced the launching of any new social welfare initiatives. As far as the Ladki Bahin Yojana is concerned, there is a cut of around Rs 10,000 crore in its budget allocation over the last year. The allocation for this year will be Rs 36,000 crore.

The opposition and the critics of this government deliberately overlook the fact that a substantial number of beneficiaries of the Yojana are, in fact, not eligible to derive the monthly payment of Rs.1500 but have received the dole. As soon as the scrutiny of the beneficiaries started, the government was criticized for treating the women unfairly and allegations were levelled that the women were ditched as the earlier promise was breached. The clamour for raising the amount to Rs.2100 per month has caught the government on a wrong foot but it is not a rational stand. What social justice is dispensed if women owing four-wheelers and paying income tax also exploit the scheme meant for the poor and downtrodden? If such women are excluded from the scheme, such a decision should be welcomed. Anticipating a considerable reduction in the number of beneficiaries, the provision of allocation appears reasonable. Of course, the decision will have to be revised later since even this amount is very large, depriving many other vital sectors of provisions in the budget.

In a bid to make local governance more effective, the budget has increased the annual plan provision by 11 percent, increasing it to Rs 20000 crore. This decision is taken in view of the local body elections due in later part of the year. Social justice initiatives have received a strong dose of allocations as well. For Scheduled Castes (SCs), the provision in the annual plan has been increased by 42 percent. It is 40 percent higher for the ST component.

Significantly, the budget does not contain any new infrastructure projects as the priority will be for completing the ongoing projects, many of them overdue in terms of time and cost. Hence, ensuring their timely completion rather than launching new ones appears to have prompted the finance minister to take this step. The road sector is markedly kept shorn of any fresh announcements. Nonetheless, the government is planning to develop 1500 km of new roads and upgrade 7000 km of existing roads by cement concreting them.

For Mumbai, the budget has made a provision for its third airport, which is planned to be operational by 2030. It will come up in the vicinity of Vadhvan Port in nearby Palghar district. For Shirdi airport, a night landing facility will become available soon.

The economy of Mumbai is projected to grow from the present 140 billion US dollars to 300 billion dollars whereas Mumbai Metropolitan Region is being developed as a major growth hub, with the object of reaching a 1.5 trillion dollar mark economy by 2047.

According to the Economic Survey presented to the legislature, Maharashtra’s economy is expected to grow at 7.30 percent, overtaking the national growth estimate of 6.50 per cent. But the survey has noted a negative growth in the industrial and service sectors. The Survey notes that Rs 17,500 crore has been released under the Ladki Bahin Scheme into the bank accounts of more than 23.80 million beneficiaries as of December 2024. The Yojana was incepted in July 2024. It has transferred money to 2.53 crore women and has incurred expenditure of over Rs 33000 crore.

The faster pace of progress in several other states has started challenging Maharashtra’s prime position on the scale of development and industrialization. However, the infusion of substantial investments by the Union government in various infrastructure projects and the state’s initiatives to promote employment generation will be successful only on the basis of prudent financial management. In short, populist schemes should be kept on a backburner till the state regains its robust economic health.