Maharashtra Funding Crisis Delays Projects Amid Drought

Maharashtra Drought Relief: Construction Projects Put on Hold for a Year as State Faces Funding Shortage; Government Schemes Face Cuts

The state has reportedly declared drought in more than 300 talukas. An official claims that expenditure on the Ladki Bahin scheme is affecting funds available to other departments.

Mumbai: The Maharashtra government has declared drought in more than 300 talukas across the state and has reduced allocations for several schemes to meet drought-relief requirements. Approximately ₹45,000 crore is estimated to be needed for drought relief. As an initial measure, road construction and other infrastructure projects being funded from the state treasury have been suspended for the next year.

Ladki Bahin Scheme Adds to Financial Burden

The Ladki Bahin scheme is placing an additional burden of approximately ₹30,000 crore on the state treasury. Funds from several departments, including the Social Justice Department, have reportedly been diverted to finance the scheme.

As a result, several existing schemes have almost come to a standstill, while others are facing difficulties in securing funds, a senior official from the state Finance Department said.

State Seeks Financial Assistance from Centre

Chief Minister Devendra Fadnavis recently met Union Home Minister Amit Shah and conveyed the need for substantial financial assistance from the Centre to tackle the drought situation.

The Central Government has reportedly assured the state of significant financial assistance. Maharashtra is now looking towards the Centre for the funds needed to manage the crisis.

Borrowing May Be the Only Option

Even if financial assistance arrives from the Centre, the state is likely to continue facing a funding shortage.

The kharif crop season has been severely affected, leaving farmers with substantial losses. With the rabi season approaching, the prospects of significant agricultural recovery also appear limited.

According to the Finance Department, the state government may have no alternative but to borrow money to meet its financial requirements.

The state's financial situation is reportedly becoming increasingly serious, with concerns that it could face difficulties paying the salaries of government officers and employees next year.

Water Shortage Could Worsen

The state is preparing for a potentially severe water crisis. As part of the measures being considered or implemented, a 20% reduction in water supply has been specified for municipal areas, while industries have been required to reuse 30% of their water.

Nevertheless, substantial funds will be required to ensure drinking-water availability during the coming summer.

The government intends to prioritize essential schemes, while the Finance Department has imposed strict restrictions on expenditure for other works.