₹5,900 crore bonanza for Shinde faction’s 40 MLAs

The state government tabled supplementary demands of a whopping ₹52,327 crore, which is the highest in any session in the recent past and amounts to over 10 percent of the total budget of the state

Nagpur: In its bid to placate MLAs who had helped topple the MVA government as also to aid them in generating goodwill among their constituents, the state government has raised additional funds of ₹5,500 crore through supplementary demands on the first day of the state legislature’s winter session.

Nagpur, India - December 19, 2022: CM Eknath Shinde during the Winter Session of Maharashtra State Assembly, in Nagpur, India, on Monday, December 19, 2022. (Photo by Sunny Shende/HT Photo) (Sunny Shende/HT Photo)

The government tabled supplementary demands of a whopping ₹52,327 crore, which is the highest in any session in the recent past and amounts to over 10 percent of the total budget of the state. Supplementary demands for grants are presented when expenditure exceeds the amounts approved and allocated by the government during the budget session.

The Shinde-Fadnavis government, which came to power in June this year by toppling the MVA government led by Uddhav Thackeray, has been regularly allotting additional development funds through supplementary demands to constituencies led by the rebel MLAs and MPs. Supplementary demands are proposed thrice a year for an outlay over and above the budgetary allocation.

This time, Shinde’s MLAs have received a humongous ₹4,500 crore for the urban areas and ₹1,000 crore for rural ones. The allocation has been made for special schemes which include construction of roads, community halls and other infrastructure development works that help the MLAs in strengthening their voter base.

“While allotting funds, ruling party MLAs get priority regardless of which political party is heading the government,” said a leader from the Shinde-led Balasahebanchi Shiv Sena. But the Shinde-Fadnavis government has been more generous towards the 40 rebel MLAs who helped in forming the government by walking out of the previous Thackeray government.”

Of the total supplementary demands, the Shinde-led urban development department has received the highest allocation of ₹8,946 crore. The second highest allocation has gone to the industries department ( ₹7,663 crore) headed by Shinde camp leader Uday Samant. The public works department, headed by BJP leader Ravindra Chavan has received an outlay of ₹7,332 crore.

The money earmarked for supplementary demands has raised eyebrows in the state administration, as, according to officials, it leads to fiscal indiscipline. “The supplementary demands tabled today are the highest in the recent past,” said an official from the finance department. “The provisions made in the budget for the financial year could take a backseat to make way for the new demands. However, the impressive collection of GST and stamp duty can justify the high amount of supplementary demands.”

Leader of the Opposition in the legislative council Ambadas Danve said the Shinde government had kept the budget passed by the Thackeray government aside. “It is against legislative custom to do so,” he said. “The Shinde -Fadnavis government has kept projects approved by the Thackeray government on the back burner. The supplementary provisions have been made to fulfil the assurances given to the rebel MLAs.”

Rupesh Keer of Samarthan, an organisation that studies the state budget, said that according to budgetary customs, the supplementary provisions should not cross 10 per cent of the actual budget. “The Shinde-Fadnavis government had tabled supplementary demands of over ₹25,000 crore in the monsoon session,” he said. “With the supplementary demands expected to be tabled in March, the total will cross 25 percent in the current fiscal year, which is bad for fiscal discipline.”

The government has also made a provision of ₹4,998 crore via supplementary demands towards a waiver of electricity bills extended to the agricultural, textile and industrial sectors.