100 days of MVA govt: Empty coffers, but high expectations

Empty coffers, falling revenue due to economic slowdown, high expectations and a circus of three parties – the performance of the Maharashtra Vikas Aghadi (MVA)

Empty coffers, falling revenue due to economic slowdown, high expectations and a circus of three parties – the performance of the Maharashtra Vikas Aghadi (MVA) government has not been promising in the past 100 days.

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In the first 100 days, the MVA government rolled out two major schemes. The farm loan waiver, which requires ₹29,700 crore, was rolled out in a record time of two months, after the announcement on December 21. The government has set April-end deadline for its completion. Comparing the previous government’s loan waiver, which disbursed ₹18,800 crore to 48 lakh farmers in two years and took seven months to roll out after announcement, the government could boast of it as an achievement. The second was the Shiv Bhojan Thali, ₹-10 meal being offered at more than 200 centres. After spending ₹6.48 crore in the first three months on it, the target is to take the number to one lakh thalis a day at an annual expenditure of ₹148 crore.

“The ruling parties may gain political mileage out of loan waiver and Shiv Bhojan Thali, but such schemes send the economy for a toss. Two loan waivers of more than ₹45000 crore in three years is bad for the economy. Its obvious results: the capital expenditure generating assets and essential expenditure on social scheme have reduced over three years. The new waiver will have its financial effects over the next few years,” said an official from the finance department.

“The debt burden is expected to touch ₹5-lakh-crore next financial year. The devolution of the central taxes to the state has been reduced by more than ₹6,000 crore, the compensation due from the Centre towards the loss of GST collection has piled up to more than ₹12,000 crore. This has put burden on the state finances, in addition to the burden of loan waiver. The widening gap between the receipts and expenditure has resulted in reduction in spending on asset generation and social schemes,” the official said.

“The government should plan well for the remaining period,” said political analyst Anant Dixit. He said that besides the populist schemes, the Thackeray government should also look at other social problems. “Reforms in police force, academic system, waste management and basic amenities for women at public places need urgent attention,” he said. The MVA government will also have to walk the tightrope with the ongoing legal battle in the Supreme Court to save the Maratha reservation given by the earlier government. Demands of reservation by other communities, including Dhangars (shepherds)and Lingayats, too, may prove contentious.

Another analyst Hemant Desai said, “There are many assurances in the Common Minimum Programme of the MVA government, and fulfilling them would be a big challenge for it.”