Maharashtra is expected to face significant fiscal challenges in the financial year 2025 due to the electoral victory of the BJP-led Mahayuti alliance.
Economists predict that the state's budget will be strained by the implementation of increased financial assistance to women, as outlined in the election manifesto.
The Mahayuti alliance has committed to raising the monthly cash transfer for financially disadvantaged women with an annual family income below Rs 2.5 lakh from Rs 1,500 to Rs 2,100, which represents a 40% increase.
This adjustment is estimated to cost around Rs 5,600 crore by March 2025, potentially pushing the fiscal deficit beyond the targeted 2.6% of Gross State Domestic Product (GSDP).
The Maharashtra budget presented in June 2024 partially accounted for the fiscal implications of the Ladki Bahin Yojana, but the expected increase in assistance could worsen the state's financial pressures.