The landmark victory by the BJP-led MahaYuti alliance bodes well for Maharashtra as consolidated Centre and state politics should allow a pick-up in infrastructure development and other pending issues, a report showed on Monday.
The victory bodes well in the medium term, as the state suffered due to the fractured political mandate in recent years, with its performance on growth and infrastructure parameters lagging that of most other states, as a result, according to the report by Emkay Global Financial Services.
With a BJP-led coalition now in office -- both at the Centre and in Maharashtra -- consolidated political capital should allow for better focus on state-specific issues, as well as expedite infrastructure spending.
The MahaYuti popularity turnaround led by the 'Ladki Bahin' scheme (Rs 1,500 per month financial assistance to women) has had a tangible effect, with several other state governments introducing similar schemes over the past 18 months.
More than 2.36 crore women got Rs 7,500 (Rs 1,500 per month each from July to November) with the assurance to increase the financial aid to Rs 2,100 and later to Rs 3,000 per month.
Due to the flawless implementation of the scheme, women's faith in the MahaYuti increased.
According to the report, the H1 FY25 fiscal situation for Maharashtra is comfortable so far, led by limited Capex spend.
“The fiscal pressure will intensify in the near term with the implementation of pre-poll promises to raise 'Ladki Bahin' aid to Rs 2,100 per month (from Rs 1,500 currently), implying annualised budgetary increase of 40 per cent to Rs 644 billion from Rs 460 billion, with the state FY25 budget likely bearing Rs 70-Rs 90 billion additional cost,” the report mentioned.
While it would be simplistic to attribute electoral victories to these populist schemes alone, they have now become a significant part of electoral/political calculations in India, and their success means that we are likely to see these schemes being replicated across states in their respective upcoming election cycles, it added.
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