Ladki Bahin drains state's treasury; budgeted expense to dip 5-10% more

Unpaid contractors a tip of the iceberg; unbudgeted spends impact other sectors as well, say officials

- Surendra P Gangan and Swapnasaurabha Kulshrestha

MUMBAI: Government contractors' indefinite stop-work stance in protest of unpaid dues amounting to over ₹90,000 crore, in the current financial year, has exposed the state's depleted treasury; and it is believed that the situation is set to become bleaker, with officials in the government stating that the budgeted expenditure is likely to drop further by 5-10%.

The treasury is in a bind, they say, thanks to populist schemes such as the Ladki Bahin Yojana, floated before the Assembly election last year, and other unbudgeted spends, such as ₹25,000 crore spent on Annapurna yojana, through which over 10 lakh households receive three free cooking gas cylinders.

Other doles include stipend for the unemployed youth and free pilgrimage for elderly citizens.

People in the know say, these schemes are costing over 12% of the estimated revenue receipts of ₹4.99 lakh crore.

Apart from this, 58.5% is spent on salary, pension and interest on loan, which are committed expenses.

Impact of cash crunch