Authorities warn that the state's financial stability could be harmed by the government's populist policies

Financial experts have voiced worries over the Shinde-Fadnavis administration's plans, which have so far cost the state exchequer Rs 12,000 crore. According to a study, the state government gave the farmers twice as much money as they were entitled to, in violation of the National Disaster Response Fund's compensation guidelines. The report stated that the government spent Rs 513 crore on the announcement of the distribution of kits containing necessities for Rs 100 in ration stores.

 

Additionally, the government now bears the burden of infrastructure project bank guarantees. In the report, an official was quoted as saying that while the choices do not have an immediate effect, they have a negative long-term effect on the situation of the economy because the state government must repay loans for which it is a guarantee.

 

The unnamed official went on to say that officials have been told to oppose decisions and that the E-D government, or Eknath-Devendra government as they are known in the media, is hurriedly appeasing the populace. The official also revealed that more schemes will be announced before Municipal and other Local Body Elections.

 

According to officials, less money is being spent on development projects as a result of the fiscal deficit. Another official was quoted in the article as saying that the state finance department anticipates meeting projected revenue receipts of Rs 3.08 lakh crore but stressed the need to use the funds wisely and warned that the fiscal deficit could increase if the global recession affects Maharashtra's economy in the near future.

 

Neeraj Hatekar, an economist, was quoted in the article as suggesting that rather than just making populist pronouncements, the government should implement a system that cares for total development. Additionally, he raised concerns, saying that while giving out perks is not a problem, the societal consequence of doing so needs to be taken into account. Although Maharashtra performs rather well in RBI reports on state finances, it still has enormous debts, he continued, emphasising the need to use exchequer funds wisely.

 

 

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