Accusing the current Maharashtra government of exponentially increasing the financial burden of the state, former chief minister Prithviraj Chavan said that the state's fiscal budget presented in July was only to pump in the Mukhya Mantri Ladki Bahin Yojana. The scheme costing Rs 94,000 crores has taken the state's fiscal deficit to GDP ratio beyond 5 percent, which is not ideal, Chavan claimed.
Speaking exclusively with The Free Press Journal on Wednesday, Chavan said, "The state's interim budget was presented in February and the next budget was due in November after elections. However, ahead of the polls, the Eknath Shinde government presented a second financial budget in July only for the Ladki Bahin scheme. The scheme could have been announced in a press conference and there could have been an executive order to implement the scheme," Chavan added.
Fiscal deficit, the biggest challenge
Chavan, who is also in charge of drafting the Congress' manifesto for the upcoming state election, highlighted that fiscal deficit is the biggest challenge for Maharashtra currently.
Explaining how the Ladki Bahin scheme has added a burden on the state, the senior Congress leader said, "The original budget was of Rs 1 lakh 10 thousand crore. Within a week, they brought a supplementary budget of 94,000 crores. That makes a deficit of 2 lakh 4 thousand crore. Additionally, Rs 36,000 crore was provided for Ladki Bahin Yojana." " So, the state now reels under Rs 2 lakh 40 thousand deficit on the GDP of 42 lakh crore," Chavan added.
Speaking on the state's borrowing capacity, he said, "The fiscal deficit to GDP ratio ideally should be below 3 percent, as per Fiscal Responsibility and Budget Management Bill. But, we are now going beyond 5 per cent. The state would need Rs 2 lakh 40 thousand crore loan and we already borrowed Rs 7 lakh 80 thousand crore. The state approaching the debt ceiling which will make it difficult to borrow at concessional rates," the former CM said.
Chavan also stressed that considering the finances, the Mahayuti if it comes to power is unlikely to continue the Ladki Bahin Scheme.
About Ladki Bahin Yojana
The Majhi Ladki Bahin Yojna was announced by Deputy Chief Minister and State Finance Minister Ajit Pawar in the financial budget presented in July.
Under the scheme, Rs 1,500 is slated to be transferred into the bank accounts of eligible women in the age group of 21 to 65 every month and the government has started releasing Rs 3,000 for the months of July and August.
