Maharashtra Looks To Implement Populist Scheme As State's Debt Rises To ₹7 Lakh Crore

The Maharashtra government presented its full budget on June 28. The budget presented by Finance Minister Ajit Pawar projected the richest Indian state's economy to grow to Rs 42,67,771 crore in this fiscal year, and the state's economy is expected to grow at a 5.5 per cent rate.

Majhi Ladki Bahin Scheme

In the budget, along with other announcements, the government also made some standout announcements, that made it to the headlines. One of them was The 'Mukhyamantri Majhi Ladki Bahin’ scheme.

According to this scheme, women between the ages of 21 and 60 would be provided with an amount of Rs 1,500 a month. The government has allocated a total sum of Rs 46,000 crore for this scheme.

In addition, another scheme that garnered attention was the 'Mukhyamantri Annapurna’ scheme, where a family of 5 would get 3 free cylinders annually.

Although the state is largest contributor in terms of the national GDP, the state debt has recently risen to the mark of Rs 7 lakh crore. In 2022–23, the overall debt figure stood at Rs 6.29 lakh. Last financial year, the state borrowed a total amount of over Rs 80,000 crore.

Revenue Deficit At Rs 20,051 crore

These schemes are being announced when the revenue deficit for 2024–24 is estimated to be Rs 20,051 crore. Compared to 2023–24, when the revenue deficit stood at Rs 16,122 crore.

When it comes to the fiscal deficit, the state's numbers stood at Rs 95,501 crore or 2.46 per cent of the economy in 2023–24. This is expected to rise to Rs 1,10,355 crore or 2.6 per cent of the state's economy.

Meanwhile, Maharahstra's expenditure on other avenues is set to drop. The government's total allocation to urban development dipped by 27 per cent, with Rs 22,759 crore. The allocation for the family and health department also dropped by 9 per cent, with a total amount of Rs 27,748 crore.