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Maharashtra

Maharashtra finances not robust, but salvageable with ‘discipline’

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As the Maha Vikas Aghadi (MVA) government readies for its third annual Budget (2022-2023) in early March, the focus is again on the state of the state’s finances.

The state has been grappling – ranking among the worst-hit – with the ongoing Coronavirus pandemic and the series of lockdowns that have played havoc with the economy, revenues and expenditure, and diversion of most resources to the health sector for the masses reeling under the impact of Covid-19.

Till the previous fiscal (2020-2021), the state had notched up a whopping debt of Rs 520,717 crore, mostly comprising unpaid loans and other liabilities.

However, the fiscal deficit percentage vis-a-vis GSDP is 2.1 per cent and the debt stock to GSDP is 19.6 per cent – well within the prescribed limits of 25 per cent, as per the Fiscal Policy Strategy Statement of last year, according to the official data.

“Though appearing huge, the debt figures are an accumulation of the past several years owing to various factors. The average annual addition is in the range of Rs 65,000 cr,” said Dr Ratnakar Mahajan, well-known economic expert and former Executive Chairman, Maharashtra State Planning Board.

Unlike many other states, there are no money-guzzling ‘populist schemes’ operating in Maharashtra – barring one important welfare measure started in Jan/2020 – the affordable meal of ‘Shiv Bhojan Thali’ – which was extended and heavily subsidised after the pandemic lockdowns were imposed in March 2020.

A pet venture of Chief Minister Uddhav Thackeray, the ‘Shiv Bhojan Thali’ – on which the state government has spent less than Rs 500 crore in the past 24 months – proved to be a life-saver for the urban-rural poor and the lakhs of migrants on the move in the early days of the lockdown series.

However, officials say the debt has to be serviced without fail every year – which is the expenditure part of the annual budget – but there is scope for being prudent, said an official of the state Finance Ministry, headed by Deputy Chief Minister Ajit Pawar.

The official – requesting anonymity – explained how the two years of the severe pandemic has hit all sectors of the economy, compounded by the economic slowdown, job losses which are now gradually being rolled back, the farm loans waivers, handling a series of natural calamities, shortfall in all types of tax revenues and also the massive amount of GST dues pending from the Centre.

Dr Mahajan said one of the factors responsible for growing fiscal burden in the past was, finances were raised at higher interest rates for shorter periods, like availing loans at 11 per cent for 3 years.

Some governments managed to overcome this by restructuring the old loans at lower rates of interest for longer periods – say, at 8 or 9 per cent for 5 years – which lessened the burden and spread it over the years less painfully.

Besides, whenever any government takes up new or mega-projects, it becomes the responsibility of the next regime to take it forward with adequate budgetary provisions.

Officials said some like the Metrorail may be top priority to reduce traffic congestion but others like the Bullet Train could wait for a while to prevent diverting scarce resources from other critical sectors, especially during the pandemic period.

Nevertheless, Dr Mahajan feels that with ‘safer and cautious decisions” it is very much possible to bring the state’s finances “well on the track” in just two years.

“This was done in the past during the tenure of the former Chief Minister Sushilkumar Shinde… with certain decisions that helped revive the financial situation and also reduced the state’s debt burden significantly,” he said.

As for the next year’s State Budget (2022-2023), all eyes are on (DCM & FM) Ajit Pawar to see how he juggles with the stretched finances and scarce resources to keep the state afloat amid optimistic signs that it is veering out of the scalding Covid-19 cauldron.

Maharashtra

Mumbai: Ruckus over Aurangzeb’s picture being hoisted during protest at Dadar Chetana Bhoomi, police ordered to investigate, 8 FIRs registered so far

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Mumbai: A ruckus has erupted once again over the hoisting of Aurangzeb’s portrait at the CJP protest demonstration at Dadar Chetana Bhoomi in Mumbai, which has further escalated the situation, while politics has now started under the guise of Aurangzeb, while the police are investigating the matter. Mumbai Police has intensified its action against those protesting in support of the Delhi Jantar Mantar protest in Maharashtra and Mumbai. So far, about 8 FIRs have been registered against the protesters, of which four FIRs have been registered in Shivaji Park, Chetna Bhoomi, along with one FIR in Marine Drive and Azad Maidan. Now, politics has started in Mumbai over the hoisting of a poster of Aurangzeb (may Allah be pleased with him) during the protest. The police have started an investigation in this matter. Aurangzeb’s picture was hoisted during the protest in Dadar Chetna Bhoomi, which was later removed. However, in this matter, the police are investigating who had included this picture in the protest and what was the purpose behind it. The police have started an investigation in the matter of hoisting Aurangzeb’s picture in Mumbai and are formally finding out who was the one who hoisted this picture and what was the purpose behind it. DCP Mahendra Pandit said that in this matter, through social media, The identity of the accused is being ascertained, along with a case registered for illegally blocking the road and protesting without prior permission. In this case, an investigation is also underway as to why Aurangzeb’s picture was brought and what was the purpose behind it, while politics has started after this incident and the paper leak case has become Aurangzeb’s responsibility. The Home Ministry has ordered the Mumbai Police to investigate this matter and the police are conducting an inquiry into this matter. In the FIRs registered by the police so far, 600 accused have been named.

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Maharashtra

Raj Thackeray criticises Centre over CJP protest clashes

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Mumbai, July 21: Maharashtra Navnirman Sena (MNS) chief Raj Thackeray on Tuesday launched a scathing attack on the Central Government over the forcible hospitalisation of climate activist Sonam Wangchuk and the violent lathi-charge on protesting students.

Taking to X, Thackeray condemned the government’s heavy-handed response, remarking, “This government itself has become mentally ill and needs to be admitted to a hospital.”

Expressing displeasure over the action against peaceful demonstrators, the MNS chief said the Central Government forcibly picked up Wangchuk and admitted him to a hospital. He added that the ruthless lathi-charge on protestors showed the government took pride in crushing legitimate protests.

Reiterating his demand for the resignation of Union Education Minister Dharmendra Pradhan, Thackeray questioned the government’s reluctance.

“Who is Dharmendra Pradhan that accepting his resignation feels like a failure to the government? The outrage of the nation’s students is far more important than the ego of Dharmendra Pradhan and the government,” he said. He asked why the Prime Minister, who conducts ‘Pariksha Pe Charcha,’ was not engaging directly with students on the streets.

Criticising the ruling dispensation’s attitude toward grievances and the opposition, Thackeray asserted that the administration had developed an arrogant mindset.

He alleged that the ruling party believed it had won the elections through central agencies and EVMs rather than through public votes.

Drawing parallels with historical and global student movements, Thackeray cited the Arab Spring (2011), the Sri Lankan crisis (2022), anti-government protests in Nepal, and Jayaprakash Narayan’s ‘Sampoorna Kranti’ (Total Revolution) in India, noting that student unrest has historically triggered major political shifts.

“This movement isn’t restricted to just one exam. It is an outburst of public despair against inflation, contract culture, suffocating urban development, and broader governance failures,” he said.

He added that the courage shown by students stemmed from deep despair over the state of affairs in the country, warning that power gained through historic movements would slip away if the government relied on brutality rather than wisdom.

Reaffirming his party’s stance against centralised entrance exams like NEET, Thackeray urged the administration to show wisdom rather than force.

“An incompetent minister must resign, and complete transparency must be brought into examinations. There is no bravery in ruthlessly crushing protests; true wisdom lies in resolving them through dialogue. MNS extends its full support to these students and their demands,” he noted.

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Maharashtra

There is no opposition to peaceful protests, but violence broke out during protests in Delhi, conspiracy to create unrest during protests: Devendra Fadnavis

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Mumbai: Maharashtra Chief Minister Devendra Fadnavis has made a serious allegation and termed the violence in the peaceful protest of the CJP at Delhi’s Jantar Mantar as a political agenda. He said that behind it, many political parties are trying to gain political benefits, while many sincere people are also involved, but the way violence was unleashed in this protest is completely wrong. Stone pelting on the police and breaking vehicles is absolutely not right. Fadnavis has also supported the action of the Delhi Police and said that the police have shown patience and restraint. Regarding the protest, Devendra Fadnavis has made it clear that everyone has the right to protest in the Constitution and democracy, but no one has the right to disrupt the situation by protesting without permission. If someone protests without permission or creates violence and tension, action will be taken against him. He said that some elements have also joined the JCP protest who have nothing to do with the protest, they are only involved in their own benefit and a conspiracy to create unrest in the country. Devendra Fadnavis has said that action is taken against protest demonstrations only when they are ready for violence or are part of a conspiracy. He said that no action is taken against those who protest with permission, while everyone has the right to protest and no one can be deprived of it. Fadnavis said that in the backdrop of the JCP protest, an attempt is being made to spoil the situation, which is intolerable. He added that everyone has seen what happened in Delhi and how violence was unleashed here. Along with this, the police have also taken action against the protest demonstrations in Maharashtra and Mumbai, while Fadnavis has also supported the police action against the protesters.

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