Dr. Dipen Agrawal Critiques Maharashtra State Budget as Populist Pre-Election Move
Dr. Dipen Agrawal, President of the Chamber of Associations of Maharashtra Industry & Trade (CAMIT), has criticized the recently presented Maharashtra State Budget as a "please all pre-election populist budget." According to Dr. Agrawal, the budget, presented by Deputy Chief Minister and Finance Minister Ajit Pawar, is heavily focused on appeasing farmers, women, and youth voters, while offering little to support trade and industry.
Dr. Agrawal pointed out that the budget includes several populist measures aimed at garnering electoral support. Among these are financial support schemes for women, including a monthly stipend of Rs. 1500 for women aged 21 to 60, and the introduction of 10,000 pink rickshaws for women in the state. Additionally, the budget announced the Chief Minister Majhi Ladki Bahin Yojana and promised three free gas cylinders per family per year.
For the farming sector, the Namo Shetkari Yojana is expected to benefit 92 lakh farmers, and 163 irrigation projects are slated for completion over the next two years. A long-term loan of Rs. 15,000 crore has been approved by NABARD to support these irrigation efforts, and a Rs. 3,200 crore program will be implemented to deliver water to drought-affected areas.
The budget also includes a reduction in VAT on petrol and diesel in the Mumbai, Navi Mumbai, and Thane regions, resulting in an effective reduction of 65 paise per liter.
However, Dr. Agrawal expressed disappointment that the budget did not address the longstanding demand to close the Local Body Tax (LBT) department in all municipal corporations, nor did it offer a reduction in power tariffs for industries. He noted that while the finance minister has set a goal of transforming Maharashtra into a US$1 trillion economy, the budget does not provide concrete support for trade and industry to achieve this vision.
Dr. Agrawal summarized his reaction by stating, "The Finance Minister’s attempts are clearly to please farmers, women, and youth voters. Whether these populist announcements will be implemented remains to be seen. The trade and industry sector is disappointed, and more could have been done."
In his assessment, Dr. Agrawal rated the budget a 6 out of 10, reflecting his view that it falls short in addressing the needs of the business community while heavily favoring populist measures in anticipation of upcoming elections.
