Maharashtra Election Results 2024: New Alliance Govt Facing Rs 35,000 Cr Burden, How it Will Affect The Financial Situation?

Maharashtra Election Result 2024: The Mahayuti Alliance's victory in the Maharashtra Vidhan Sabha elections has cleared the way for a government with a full majority, but it also poses severe financial concerns. According to a Money Control study, if the government implements all proposed direct cash benefit initiatives, including unemployment benefits and improved cash transfers to women, beginning in January (the final quarter of the fiscal year), it will incur an additional expenditure of Rs 9,000 Cr. If these plans are implemented in the next fiscal year (FY25-26), the yearly burden could approach Rs 35,000 Cr. Key efforts include the Mukhyamantri Majhi Ladki Bahin Yojana, which offers Rs 2,100 monthly to women aged 18 to 60, and unemployment compensation of Rs 10,000 monthly to over 10 lakh youth. These expenditures, combined with increases in farmer and worker benefits, are anticipated to expand the state’s fiscal imbalance from 2.6% to 2.8% of GDP.

Financial Challenges For Maharashtra Govt

Farmers will receive an annual help of Rs 15,000 under the Nammo Shetkari Mahasamman Nidhi scheme, resulting in an additional Rs 630 Cr burden. This increased financial obligation could limit the state’s ability to pay capital expenditures, particularly infrastructure development, and may necessitate strategic modifications to control the budget deficit. Balancing these promises while ensuring long-term growth will be a significant issue for the Maharashtra administration in the coming years.