'Revenue deficit has gone beyond...': Maharashtra facing financial pressure due to new schemes

The Maharashtra government is under financial strain due to a revenue deficit, fiscal responsibility, and the announcement of new schemes, according to the state Finance Department. As a result, the department has stated that it cannot take on additional liabilities, The Indian Express reported on Sunday. This was flagged in a note containing 'negative' remarks on a proposal by the state's Sports Department, which sought revised administrative approvals worth Rs 1,781.06 crore for the construction of sports complexes across the state.

Despite the concerns raised by the Finance Department, the government has granted the revised approvals. Of the total amount, Rs 339.68 crore has been approved for post-work, while the remaining funds will be cleared on a case-by-case basis, the report said. The Sports Department is led by Nationalist Congress Party (NCP) minister Sanjay Bansode. Revised administrative approval refers to a modified estimate of a project, in addition to the original allocation.

"In the year 2024-25, the fiscal deficit has reached Rs 1,99,125.87 crore due to the additional budget and supplementary demands. The revenue deficit of the state has gone beyond the 3 percent mark. As a result of the revenue deficit, fiscal responsibility, and new schemes announced by the state government, the government is facing a lot of financial pressure. In such a situation, the state government cannot accept the additional responsibility," the Finance Department noted in its remarks according to IE. 

The note did not specify the schemes responsible for the financial pressure. However, the government's 'Majhi Ladki Bahin' scheme, which provides Rs 1,500 per month to eligible women over 18 years old, is expected to cost Rs 46,000 crore annually. This scheme was announced in the budget presented by Deputy Chief Minister and Finance Minister Ajit Pawar.

Additionally, under the Annapurna Scheme, the state will cover the cost of three free cooking gas cylinders per year for Below Poverty Line households. The state government has also pledged to cover 100 per cent of tuition and exam fees for girls from Backward Classes and Economically Weaker Sections pursuing higher education.

The Finance Department's note pointed out that a State Sports Development Committee had sanctioned out-of-policy proposals for sports complexes and exceeded fund distribution limits. This, according to the department, contributed to the need for revised administrative approvals, which it described as a case of "financial indiscipline". 

Despite objections from the Finance Department, a government resolution issued on Friday sanctioned the revised approvals. These include Rs 155.26 crore in revised administrative approvals for various sports complexes, including Rs 75 crore in post-work approval, Rs 184.42 crore for nine sports complexes sanctioned outside the policy guidelines, and Rs 1,441.38 crore for 141 sports complexes, subject to future policy guidelines.

This 'negative' note by the finance department may provide fresh ammunition to the opposition MVA, which is often accused by the NDA of indulging in freebies politics. The ruling party's 'Ladki Bahin Yojna' came soon after the Lok Sabha setback, where the NDA could win only 17 of 38 seats. Many saw this scheme as an attempt to woo women voters.