Mahayuti’s Balancing Act: Silent on manifesto doles, focus on ongoing projects

Maharashtra’s overall debt stock rose to Rs 8,39,275 crore for 2024-25 (revised estimate) compared to Rs 7,18,507 crore of the previous fiscal. The budget estimate for 2025-26 has taken the total debt stock to Rs 9,32,242 crore, which is 18.87% of the state Gross State Domestic Product, the highest in the past five years.

The Budget, which mentioned the ongoing infrastructure as well as other projects in the state, had no significant new announcement. While the government allocated Rs 36,000 crore for the Ladki Bahin scheme, it made no mention of a hike in the allowance from Rs 1,500 to Rs 2,100, as promised by the Mahayuti before the Assembly polls last year.

During the poll campaign, the Mahayuti had also promised a farm loan waiver. Pawar made no such announcement in an apparent attempt to balance the books. Two weeks ago, Chief Minister Devendra Fadnavis had announced an increase in the state’s share in PM Kisan Samman Nidhi by Rs 3,000.

Exploring revenue options, the state proposed to levy motor vehicle tax at the rate of 6% on electric vehicles priced above Rs 30 lakh. It also proposed to levy motor vehicle tax, compulsorily on a lump sum basis, at 7% on the price of construction vehicles such as cranes, compressors, projectors and excavators as well as on the price of light goods vehicles carrying goods up to 7,500 kg. The government expects these taxes will bring an additional revenue of around Rs 1,000 crore.

Fadnavis said the budget is based on agriculture, industry, infrastructure, employment and social welfare. “Maharashtra’s budget size has reached Rs 7 lakh crore, making it the largest budget in the country after Uttar Pradesh. As a result, the state’s ability to avail loan has also increased. The budget has managed to keep the fiscal deficit at 2.7% ; it had gone to 2.9%,” he said.