The welfare scheme might hit the salaries of government employees hard. The state could face a budget deficit, making it difficult to fund essential services like education, healthcare, and infrastructure
Nagpur: The MahaYuti Government in Maharashtra has recently announced a series of welfare schemes one after another. The opposition claims that these schemes have been introduced with an eye on the upcoming Assembly elections. But how does this balance the financial accounts? How long will the MahaYuti Government be able to bear this burden on the state treasury? These are the questions on everyone’s mind. There is also talk that the Ladki Bahin scheme might hit the salaries of government employees hard.
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Mon14 Oct. 2024
Right before the Assembly elections, the MahaYuti Government introduced the Mukhyamantri Majhi Ladki Bahin scheme for women. Under this scheme, money has already started being deposited into women’s accounts.
Gadkari terms Ladki Bahin Yojana a financial burden:
Senior BJP leader and Union Minister Nitin Gadkari has called the Government a ‘Vishkanya’ (poisonous maiden) and urged people not to rely solely on it for investment, citing the financial burden imposed on the Maharashtra Government by its Mukhyamantri Majhi Ladki Bahin Yojana.
“There is absolutely no certainty whether investors will receive their subsidy payment on time. As it is, the Government has to provide huge funds for the Ladki Bahin Yojana,” Gadkari said at an event in Nagpur recently, referring to the flagship scheme to give women Rs 1,500 in monthly aid.
“Often I come across individuals who ask me when we will get our compensation. Some believe once the funds are released they will get the subsidy. All this comes with a question of when and how soon,” he added.
Gadkari said the Ladki Bahin Yojana, with an annual expenditure of Rs 46,000 crore and expected to benefit 2.5 crore women, was likely to delay subsidy payments in other sectors.
Opposition, including Raj Thackeray, raised objections:
“If the scheme has been introduced for electoral gains, then it is wrong. No community asks for freebies. Industries should be set up to provide employment opportunities for women. If the scheme is driven by the self-interest of those in power, the consequences will be harmful. If the state is being driven into a financial pit, then it is incorrect. After disbursing the October installment of the Ladki Bahin scheme, the government’s treasury will be empty by January, and there won’t be any money left to pay government employees’ salaries”, predicted Raj Thackeray, President of MNS.
“The Ladki Bahin scheme is nothing but corruption. Other schemes were discontinued, and the funds were diverted to this scheme. Will the government employees even receive their salaries”? expressed concern by Shiv Sena (Thackeray faction) MP Sanjay Raut.
Finance Department expresses concerns over the state’s treasury:
The Finance Department has expressed concerns over the state treasury and pointed fingers at the government schemes. The sports department had proposed a demand for Rs 1,781 crore for the construction of complexes in the state. Despite the Finance Department’s negative response, the government approved the proposal. The Finance Department expressed worry, stating that the announcement of new schemes is putting financial pressure on the government, making it difficult to manage the increasing liabilities.
Provisions made in the State’s 2024-25 budget:
1. An annual allocation of Rs 46,000 crore has been made for the Mukhyamantri Majhi Ladki Bahin scheme.
2. Expenses for employee salaries, pensions, and loan interest account for 53%, or Rs 2.64 lakh crore.
3. A total of Rs 6.12 lakh crore has been allocated for overall expenditure in the budget.
4. Revenue receipts are estimated at Rs 4.99 lakh crore.
5. Revenue expenditure is expected to be Rs 5.19 lakh crore.
6. Capital and other expenditures amount to 47%, or Rs 2.34 lakh crore.
Meanwhile, the state is already burdened with a mountain of debt. Implementing this scheme while the treasury is empty is a tightrope walk. Therefore, the common people are left wondering what will happen to this scheme after the Assembly elections.
The potential impact of the schemes, especially the Mukhyamantri Majhi Ladki Bahin scheme, could have both short-term and long-term consequences:
1. Short-term impact:
* Immediate relief for beneficiaries: In the short term, women benefiting from the Ladki Bahin scheme will receive financial assistance, which could provide immediate relief and improve their economic situation.
* Boost in popularity: The MahaYuti Government could see a boost in popularity due to the direct financial support to a large section of the population, which could influence upcoming elections.
* Economic activity: The direct cash transfers might lead to a short-term increase in local economic activity, as more people have money to spend.
2. Long-term impact:
* Pressure on the Treasury: The allocation of Rs 46,000 crore annually for this scheme adds a significant burden on the state’s treasury. If revenue doesn’t match the expenditure, the state could face a budget deficit, making it difficult to fund essential services like education, healthcare, and infrastructure.
* Delay in salaries: There are concerns, particularly raised by opposition leaders like Raj Thackeray and Sanjay Raut, that the government may not have enough funds left to pay salaries to government employees, which could cause discontent among the workforce and disrupt the functioning of government services.
* Increased debt: With the state already burdened by debt, implementing such costly schemes without adequate revenue could increase the debt load, making future financial management even more difficult. This could lead to more borrowing, which in turn would result in higher interest payments.
While the schemes might provide immediate benefits to beneficiaries and give the government a political edge, the long-term financial strain could result in budgetary issues, delayed payments to employees, cuts to other essential services, and increased state debt. If not managed carefully, these schemes could lead to economic instability in the future.
