Slashing value-added tax (VAT) on fuel in the Mumbai Metropolitan Region, waiving electricity bill dues for 44 lakh farmers, providing a monthly allowance of ₹1,500 to women in the 21 to 60 age group, three free LPG cylinders a year for a family of five, a stipend of ₹10,000 per month to youth for skill training, and announcing a policy for the third gender were the were the highlights of the Maharashtra government’s additional budget for 2024-25 that was presented on Friday.
Deputy Chief Minister Ajit Pawar, who also serves as Finance Minister, presented the last Budget of the Bharatiya Janata Party-Shiv Sena-Nationalist Congress Party government before the Assembly election, outlining a total expenditure of ₹6,12,293 crore with a revenue deficit of ₹20,051 crore. Mr. Pawar was presenting the Budget for the tenth time.
The decision to reduce VAT will lower petrol prices by 65 paise per litre and diesel by ₹2.60 per litre, effective from July 1. This crucial move, with the State approaching elections later this year, will cost the State exchequer ₹200 crore, stated Mr. Pawar.
Mr. Pawar commenced the presentation with an abhang (devotional poem) by the 17th Century bhakti saint Sant Tukaram Maharaj and announced the “Mukhya Mantri Majhi Ladki Bahin” scheme, providing a monthly allowance of ₹1,500 to eligible women in the age group of 21 to 60 years. The scheme, with an annual budgetary allocation of ₹46,000 crore, will be implemented from July.
He further announced that the electricity bill of agricultural pumps of 46.06 lakh farmers will be waived off leading to an expenditure of ₹14,761 crore for the government. “I announce the ‘Mukhya Mantri Baliraja Vij Savlat Yojana’ to provide relief to my farmer brothers who are in distress and need assistance. The government has decided to bear the burden of electricity bills of the farmers and to provide free electricity to agriculture pumps up to 7.5 horsepower capacity. This will help 44.06 lakh farmers. A provision for ₹14,761 crore will be made available in the form of subsidy,” Mr. Pawar said.
Introducing the “Mukhya Mantri Annapurna Yojana” aimed at women, Mr. Pawar, said there is a close connection between fuel used for cooking and women’s health. “It is our responsibility to provide clean fuel to reduce health issues for women. The use of LPG should be intensified as it is a safe fuel. We will provide three LPG cylinders free per household in a year and this will benefit 52,16,412 families,” the Deputy CM said.
Additionally, he announced the “Punyashlok Ahilyadevi Holkar Mahila Start-Up Yojana” to support small women entrepreneurs, scheduled to launch this fiscal, along with an all-India start-up convention in the State.
The government also unveiled its Third Gender policy, with the aim of promoting inclusive recruitment processes and welfare schemes, and facilitating better access for the third-gender community. “The ‘Third Gender’ option has been made available along with male and female options, in the recruitment process by the government and public authorities as well as in all the government schemes. This will make it easier for the members of third-gender community to take benefits of the State government schemes,” he said. Mr. Pawar also said that 18 new medical colleges will be set up in the State.
The Baramati MLA also announced subsidies worth ₹851.66 crore for onion farmers, at a rate of ₹350 per quintal, for the year 2023-24. A revolving fund of ₹200 crore is being created for the assured purchase of onion and cotton, Mr. Pawar said.
He also detailed plans to enhance productivity and value-chain development for cotton, soybean and other oilseeds, allocating ₹341 crore. The subsidy of ₹5 per litre for milk producers in Maharashtra will continue. “An amount of ₹223.83 crore in subsidy has been distributed to 2.93 lakh registered milk producers at the rate of ₹5 per litre and the remaining subsidy will be distributed immediately,” Mr. Pawar said.
A new initiative, “Gaon Tithe Godam” (godown in every village), will be implemented to provide storage facilities for agricultural produce. Construction of 100 new godowns and repair of existing godowns will be undertaken in the first phase.
‘Torrent of assurances’
Meanwhile, Opposition leaders dubbed the Budget as “political hypnotism” and “false narrative” ahead of the Assembly election.
Shiv Sena (UBT) leader and former Chief Minister Uddhav Thackeray dismissed the Budget as election-oriented, describing it as mere rhetoric aimed at appeasing voters, especially women. “The Budget is a torrent of assurances. It is a fake attempt to take all sections of society along. It is what Devendra Fadnavis calls ‘false narrative’,” he said while speaking to reporters on the Assembly premises.
He criticised the Majhi Ladki Bahin scheme as a “pitiable attempt” to attract women voters. “The Budget is only for the upcoming election and is all jumla [empty promise],” he said.
Mr. Thackeray suggested that an expert committee be established to evaluate how many of the schemes announced by the Maha Yuti government in the past two years were implemented.
He also noted the absence of any explanation on how the funds for these schemes would be raised.
Regarding the waiver of electricity bills for farmers, the Shiv Sena (UBT) leader acknowledged that while his demand was accepted, his primary demand for making farmers debt-free was still unmet.
He asserted that the schemes announced in the Budget would not benefit the ruling coalition, as people were eager to defeat it in the upcoming election. “Maharashtra is being looted, and those responsible for the looting will not be re-elected,” Mr. Thackeray added.
However, Deputy Chief Minister Devendra Fadnavis defended it as a “realistic rather than poll-centric” Budget.
