The current analysis studies the budget by dividing it into three areas- welfare, economic development and the areas where both the elements overlap. The article also briefly touches upon distribution of funds in these focus areas. The categorisation of the welfare and economic schemes has been done by reviewing the annual budget and Mahayuti alliance (formed by the BJP, Eknath Shinde’s Shiv Sena faction, and Ajit Pawar’s NCP faction) manifesto.
Welfare Schemes
While analysing the manifesto of the three factions, inclusive development achieved through social inclusion and welfare by women empowerment, youth, education, public health, aid to farmers, and nutrition emerged as a common theme.
Graph 1: Change in budget allocation
Source: Extracted from annual budget summary (Open Budget, 2024)
The schemes that compromise Welfare Sectors include healthcare, education and the social security schemes. While schemes within the agriculture sectors fall under both welfare as well economic development, depending on its objectives. Social security further includes schemes aimed at poverty alleviation, women empowerment, and child development. In the current budget total allocation for Social & Community Services can be further divided into Social Welfare and Nutrition schemes which make up to ₹32,754 crore and Social Security and Welfare schemes that make up to ₹15,268 crores (Open budget, 2024). However, while analysing it in terms of sectors- Public Health, Public Housing, Welfare of Backward, Welfare of Weaker Sections, Welfare of Women and Children, Welfare of Minorities, Social Security and Insurance, Vocational Education, Welfare of Tribal Communities makes up to Rs. 217,285 crores. The above-mentioned sub- categories are important for covering basic needs, ensuring equal opportunities and better quality of life.
Table 1: Sector wise distribution (in crores)
Source: Extracted from annual budget summary (Open Budget, 2024)
The major scheme that directly benefits the public includes:
1. Housing Schemes: Over a five-year period, 35,40,491 dwellings will be built using Rs 7,425 crore from the budget.
2. Mukhya Mantri Mazhi Ladki Bahin Yojana: This program, which costs Rs 46 crore a year, gives qualified women between the ages of 21 and 60 Rs 1,500 each month.
3. Mukhya Mantri Annapurna Yojana: To assist low-income households, more than 52 lakh families will receive three free petrol cylinders annually.
4. Gopinath Munde Shetkari Suraksha Sanugrah Subsidy Scheme: To provide financial aid to families of farmers in case of accidents. Directly supports farmers' families by offering a grant for accident-related incidents of Rs. 2 Lakhs, enhancing their financial security.
5. Fee Waiver for Girls: Girls from OBC and EWS families pursuing higher education will benefit from a fee waiver, with an annual budget of Rs 2,000 crores.
The current budget outlines inclusive growth for the state. The targeted schemes supporting housing, women’s financial independence, educational access, farmer security, and essential aid for low-income families, if implemented effectively will uplift vulnerable communities, enhance quality of life, and ensure broader socio-economic advancement.
Economic Development
Economic Development is an important element for the state or a country to shift from low income to high income. This includes development across infrastructure (Road construction, public transportation, and urban development projects), Industry, Agriculture (schemes focused on entrepreneurship and infrastructures), Rural Development. These sectors are critical for economic development and collectively contribute to Maharashtra’s overall economic growth.
Graph 2: Economic Development sectors
Source: Extracted from annual budget summary (Open Budget, 2024)
As stated in NCP’s manifesto throughout the state, the Mahayuti government aimed to carry out infrastructural projects of Rs. 8 lakh crores. The investment will further be targeted towards the creation of assets and job creation. The administration is adamant that the economy will grow as a result of the ssmoney flowing through it. The completion of numerous infrastructure projects in the Mumbai Metropolitan Region and growing the economy to $300 billion by 2030 are top priorities for the Mahayuti administration. With a focus on manufacturing and engineering services, the government is also encouraging agriculture and agro-based companies (NCP Manifesto, 2024).
In terms of Industry the budget also focuses on the schemes that promote industrial growth supporting small and medium enterprises (SMEs). In the current budget sectors in terms of highest allocation for economic development include-, Transport and Agriculture and Allied Activities (PRS, 2024). In the Maharashtra Budget 2024-25, infrastructure is largely covered under multiple sectors including Transport, Irrigation & Flood Control, Energy, and Industry & Minerals. The total funds allocated to the sectors cost around Rs.72, 006 crores.
Source: Extracted from annual budget summary (Open Budget, 2024)
Anlaysing it on the basis of schemes, the Agriculture sector has one of the largest ticket allocation. These schemes aim at improving agricultural productivity, enhancing market access, and fostering long-term economic growth within the Agricultural sector. They often include infrastructure development, skill training, and technology upgrades.
Schemes focusing on creating entrepreneurship:
1. Goat Cluster Scheme: To promote goat farming and create new entrepreneurship opportunities. This will be done by training farmers and improving market linkages. The scheme supports economic development through sustainable livestock farming.
Budget: 25.719
2. Rashtriya Krishi Vikas Yojana (RKVY): Aims to increase agricultural productivity and promote agribusiness. It Focuses on infrastructure, skill development, and flexible investments in agriculture to drive economic growth.
Budget: Rs. 214.67 crores
3. Maharashtra Project on Climate Resilient Agriculture (PoCRA): The scheme will improve resilience in agriculture against climate challenges. It stabilizes and boosts agricultural output by implementing climate-resilient practices, ensuring economic sustainability.
Budget: Rs. 232 crores
4. State of Maharashtra Agri-Business and Rural Transformation (SMART): Objective is to develop inclusive value chains and increase market access for farmers. It encourages economic growth by building agri-business infrastructure, facilitating community-based organizations, and enhancing value chains.
Budget: Rs. 160 crores
Maharashtra's economic development strategy is focused on infrastructure, industry, and agriculture, which are the foundation for long-term development and transition into higher income levels. Through large investments in infrastructure, the state aspires to foster job creation, economic resilience. Major highlight for the budget is however the investment in Climate resilient infrastructure and farming, which is an important long term strategy considering its geographical vulnerability.
Conclusion
The expenditure increase of 2% over 2023-24 reflects a commitment to continuing essential services and supporting inclusive programs, while the projected revenue growth of 3% signals improved fiscal health (PRS 2024). However, the fiscal and revenue deficits reflect persistent difficulties in balancing spending and revenue. Debt repayment commitments can hinder investment especially in the welfare sector in the long term. If the debt repayment is balanced out, the state can achieve inclusive development.
References and Bibliography
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NDTV.com. “Maharashtra Elections 2019: In Shiv Sena Poll Manifesto, Aid For Farmers, Promise For Meal At Rs 10.” Accessed October 31, 2024. https://www.ndtv.com/india-news/maharashtra-assembly-elections-in-shiv-sena-poll-manifesto-aid-for-farmers-promise-for-meal-at-rs-10-2115751.
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“मुख्यमंत्री - माझी लाडकी बहीण योजना.” Accessed October 31, 2024. https://ladakibahin.maharashtra.gov.in/.
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