Mahayuti's mandate: Delivering on promises without derailing growth

Focus now shifts to promises for women, farmers, and youth. They raise fiscal concerns despite Maharashtra's disciplined finances, writes INDIVJAL DHASMANA

- INDIVJAL DHASMANA

As the Mahayuti alliance decisively routed the Maha Vikas Aghadi (MVA) in Maharashtra's Assembly elections, attention has shifted to the promises that propelled its victory. The coalition of the Bharatiya Janata Party (BJP), the Shiv Sena, and the Nationalist Congress Party (NCP) has pledged significant financial support to women, farmers, youth, and senior citizens. These commitments, while politically potent, pose complex challenges for the state's fiscal management.

Maharashtra's fiscal health offers some leeway. The state's fiscal deficit remains well within the 3 per cent of gross state domestic product (GSDP) limit, while its revenue deficit is below 1 per cent.

This fiscal discipline ensures that additional spending on electoral promises may not immediately trigger alarm. However, this may raise the revenue expenditure component—which is already 80–90 per cent of total spending of the past five years—ever further, leaving little room for capital expenditure for long-term growth.