Unlike ever before Maharashtra government is trying to trim its expenses, some wisely, some not so wisely so that it can save money to keep its flagship project, Ladki Bahin Yojana of a monthly stipend of Rs 1,500 per month but hike it to Rs 2,100. It is not easy. But the government is keen on keeping its word given during the Assembly polls.
A decades-long practice in Maharashtra has been providing the annual bulky budget papers in sturdy and branded suitcases to the legislators. The intention was ease of carrying it away and the unstated purpose probably was to also use it for their travels. Accredited journalists too got it.
For the first time ever voices against it were heard for three reasons: One, the budget copies were not voluminous but loaded on pendrives; two, the estimated outgo was a whopping Rs 82 lakhs; and three, the state is starved of funds unlike before though the intent is to remain within the fiscal limits.
Wisely the idea or the long-standing practice was dropped and deserves commendation.
Acute fiscal stress
Here’s why: The fiscal stress is acute for a state once known for its prudence. Over time the debt burden has ballooned at around rupees seven lakh crores though finance minister Ajit Pawar thinks it can be managed.
At another end, a proposal has been to abandon a pro-poor scheme that was helping about 2,00,000 persons to have a meal comprising two rotis, some rice, dal, and vegetables, all for Rs 10 per thali. But this has not gone down well. Stopping it would be “unconscionable”, it has been said.
Dues not paid
The officials in his ministry have been raising red flags which ought not to be ignored. The lurch into the crisis has been visible. The latest has been the suspension of work by contractors across the state. They are owed over rupees one lakh crore for work done.
The suspension – the contractors call it a strike – has been after a long notice to pay up or face the halting of their work. The contractors, big and small, across departments, have been waiting for payments since before the elections. It has, by their claims, affected about five crore employees. A work stoppage would adversely affect the functioning of various departments.
It is challenging for Ajit Pawar to raise resources but he had done the trick once in the past as a minister in-charge of projects in the Krishna River valley. He raised bonds by pressuring contractors to sell them because their bills would be paid from funds from that instrument.
Like generating funds for the Laadki Bahin Yojana, the government has to pay the contractors too. To fund the mid-fiscal year project favouring women with an eye on the polls, the government accepted almost all applications. It is found several ineligible on the list and has eliminated some half million ‘fake’ beneficiaries.
No new welfare schemes
The forthcoming state budget will have new dimensions, but no new welfare schemes may be started. The pinch is quite intense, and the Bharatiya Janata Party, Shiv Sena, and Nationalist Congress Party want to retain their credibility.
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