Mahayuti turns one: Govt stable but bickering continues, finances must be put in order

From the power-sharing pact between the three Mahayuti allies to various government decisions, CM Fadnavis has made it clear that the BJP would is the big brother in the alliance

MUMBAI: Chief minister Devendra Fadnavis has steered the BJP-led Mahayuti alliance government through rough waters and some tricky situations – with his hands firmly on the wheel. It’s how Fadnavis will reflect on the year that was as the state government celebrates its first anniversary on December 5.

Mumbai, India - July 13, 2018:--------------------in Mumbai, India, on Friday, July 13, 2018. (Photo by Anshuman Poyrekar/ Hindustan Times) (Hindustan Times)

Fadnavis, who took oath as chief minister for the third time a year ago, draws his confidence from the Mahayuti’s powerful showing in the assembly elections, winning 235 of the 288 seats in the state. Of this, the BJP alone bagged 132 seats, buoying Fadnavis through the constant bickering between the three ruling allies that has marked year one of his government. The other concern, perhaps a little more real, is the health of the state’s treasury.

The sweeping victory for the Mahayuti coalition also ended the political uncertainty that began with the split in the BJP’s two allies – the Shiv Sena and the NCP – in 2022 and 2023, respectively. The mandate also gave the three-party alliance legitimacy.

And, yet, the government started on a wobbly note. When it became clear that the BJP would not give him another term as chief minister, deputy chief minister Eknath Shinde, who is also Shiv Sena chief, began to demand a larger share in power. But, from the power-sharing pact between the three allies to various government decisions, Fadnavis has made it clear that the BJP would is the big brother in the alliance.

“Thanks to the Mahayuti’s massive mandate, the government has functioned smoothly. However, the constant bickering between the three partners became a highlight. A year later, the guardian ministers of two districts (Nashik and Raigad) have not been finalised. Now, the bitterness is obvious in the ongoing elections to local bodies,” said political analyst Abhay Deshpande.

“Even so, stability is not a concern. The problem for Fadnavis is managing the state’s financial situation,” Deshpande added.

Financial strain

In the run-up to the elections last year, the previous, Shinde-led government had announced several populist schemes. The most prominent was the Ladki Bahin Yojana, which gives a cash handout of ₹1,500 to economically vulnerable bahins or “sisters” every month.

The government distributed ₹17,505 crore to 2.38 crore women in the second half of 2024, according to the state economic survey in March. According to state finance officials, the estimated expenditure on the scheme in the current financial year is ₹40,000 crore, which forced the Fadnavis government to cut its spending on various other schemes. Even payments to contractors across the board are delayed, compelling them to protest against the government.

According to the state budget for 2024-25, the revenue deficit was expected to be ₹45,892 crore and fiscal deficit ₹1,36,234 crore. Debt was expected to be ₹9,32,242 crore. These figures could rise further.

Despite these dire numbers, Praveen Pardeshi, chief economic advisor to Fadnavis, and CEO of the state’s think-tank MITRA, said the financial situation is not a hindrance and the government has been focussing on growth. The growth of the state’s economy will take care of various problems, he said.

On his part, Fadnavis has been focussing on infrastructure upgrades and attracting investments into the state, which could boost growth. “I have tried to build the government as an institution in the past year. Systems have been set, and targets and strategy rolled out. The next four years will be transformative,” the chief minister told HT.

Pardeshi added: “In just one year, the government increased the investment rate, which is crucial to grow our economy.”

Infrastructure push

On the infrastructure front, the Mumbai Metro 3 and Mumbai Nagpur Expressway were completed and made fully operational. A significant achievement of the government is providing solar-power connections to 3 lakh or 10% of the state’s farmers. This will make electricity cheaper for industries since they will no longer be burdened with higher tariffs for cross-subsidisation.

“Annually, we will be shifting 4-5 lakh farmers to solar power. We are also getting US $3 billion from NABARD to complete 200 irrigation projects in three years that would help drinking water and irrigation in several parts of the state,” said Pardeshi.

“Maharashtra got ₹1,64,875 crore in foreign direct investment (FDI) in 2024-25, which is 40% of the FDI received by the country,” he added.

Experts say the real test for Fadnavis will not be a political one but putting the state’s finances back on track. “There are no immediate elections after the local body polls, so Fadnavis will have time to set his house in order. The government won’t have to make any populist announcements for 2-3 years. As such, he can take some strong decisions,” said Deshpande.

On the political front, Shinde will remain an irritant to Fadnavis. The uneasy relationship between the two continues, as Fadnavis orders inquiries into decisions taken by Shinde during his tenure as chief minister, or the departments headed by Sena ministers.

Shinde fought back on the issue of guardian ministers, which remains unresolved and the Sens and BJP are locked in a bitter fight in many places in the state, in the local elections. The Ajit Pawar-led NCP, on the other hand, has been a less troublesome ally but BJP leaders know they cannot take Pawar for granted.