Mumbai: Finance Minister Ajit Pawar is set to present the state budget for the financial year 2025-26 on Monday. With the state grappling with a debt of Rs 7.8 lakh crore, all eyes are on how the government plans to manage its expenditures and generate funds to fulfill its commitments.
One of the major financial drains has been the Mukhyamantri Majhi Ladki Bahin Yojana, which alone has cost the state more than Rs 30,000 crore. Currently, under this scheme, beneficiaries receive Rs 1,500 per month. However, during the Assembly elections, the ruling Mahayuti alliance had promised to increase this amount to Rs 2,100. Additionally, the government had assured farmers of a loan waiver, and the upcoming budget will determine whether these promises will be fulfilled.
This will be the first budget of the Fadnavis-led government in this term, making it a highly significant one.
Unpaid Contractor Bills & Strikes
The state’s ongoing financial crunch has led to delays in payments to contractors Working on various government projects. The Contractors’ Association has threatened to go on strike from March 30 if their pending bills – amounting to around Rs 12,000 crore – are not cleared by the end of the month.
Power subsidies
The government has introduced substantial subsidies in the power sector, including waiving farmers’ electricity bills and providing free electricity up to 300 units monthly for economically weaker sections. These measures have intensified financial strain. To tackle this, Chief Minister Devendra Fadnavis has proposed listing the state’s power supply company on the stock market to raise funds. Currently, unpaid electricity dues from farmers amount to Rs 65,000 crore.
Economic Growth, Sectoral Challenges
Despite financial challenges, the Economic Survey presented by Deputy Chief Minister Ajit Pawar on Friday projected that Maharashtra’s economy is expected to grow at 7.3% in 2024-25. However, the report flagged a slowdown in the growth of the industry and service sectors, raising concerns about long-term economic sustainability. As the budget presentation approaches, citizens, businesses, and political analysts are keenly watching how the state government will navigate these economic hurdles while delivering on its promises.
