Populist schemes put Maha's stable financials to the test

Mahayuti govt faces scrutiny as schemes like Mukhyamantri Majhi Ladki Bahin Yojana strain fiscal resources amid rising unemployment and prices of food items, explains INDIVJAL DHASMANA

- INDIVJAL DHASMANA

Two prominent leaders from Maharashtra, including a Union minister from the ruling alliance, have tried to highlight the reality of one of the state government's popular schemes -- the Mukhyamantri Majhi Ladki Bahin Yojana (MMLBY). Union Road Transport and Highways Minister Nitin Gadkari cautioned the industry last month against relying too heavily on subsidies and grants as the state government also needed funds for schemes like MMLBY.

Maharashtra Navnirman Sena chief Raj Thackeray, on the other hand, told journalists that the state's coffers would run dry after the October installment of MMLBY is issued, and the government may not have enough funds to pay salaries to its employees and officials starting in January.

He said it would have been more beneficial if the state government had focused on providing jobs instead.

Thackeray's remarks hold some weight, as the unemployment rate in Maharashtra stood moderately higher at 3.3 per cent in 2023-24 (July-June) than the national average of 3.2 per cent.

The unemployment rate in the state inched up from 3.1 per cent the previous year, while the all-India rate remained unchanged, according to the Periodic Labour Force Survey (PLFS), which is known for underestimating unemployment figures.

Taking a cue from the CM's Ladli Behna Yojana, which received a favorable response during Madhya Pradesh's Assembly elections last year, the Eknath Shinde government introduced MMLBY earlier this year.