Eknath Shinde and Devendra Fadnavis led Maharashtra Government has tabled its first budget today. After a hiatus of nearly 3 years, the state is now witnessing clarity in its economic future. The Deputy Chief Minister and Finance Minister Devendra Fadnavis tabled the budget for the state in the State Legislative Assembly. Mr. Fadnavis’ budget deserves appreciation on various fronts. The budget transcends from a strong social and human development focus on farmers, fishermen, women, students, girl child in economically weaker sections, and underprivileged classes, to an unprecedented focus on infrastructure development and industrial investments. Probably, this would be the first time that any government in Maharashtra has tried to challenge the dominance of Gujarat in a particular sector and come out with an initiative for the same. This is where Mr. Fadnavis scores brownie points in trying to reassert Maharashtra’s economic supremacy.
Mr. Fadnavis has ambitiously announced that Maharashtra would have a 20% share in India’s US$ 5 tn GDP from current share of 14.2%. The budget is designed to achieve that target. Presumably, this seems to be the first budget in the history of Maharashtra that is extremely focused on and has allocated huge amount of more than Rs. 1 lakh crores on infrastructure. Mr. Fadnavis has recognized and acknowledged the significance of infrastructure in industrial and in turn economic development of the state.
Major infrastructure projects are targeted in urban areas to either decongest or ease urban transportation and in reducing the traffic blockages in urban agglomerations. This includes Pune Ring Road which will cost around Rs. 27,000 crores. Similarly constructing the missing link between Khopoli and Khandala on the Mumbai Pune Expressway at a revised cost of Rs. 6,695 crores is proposed in the budget. The 126 km long Virar to Alibaug multi-modal corridor is proposed at a cost of around Rs. 40,000 crores. This corridor will connect key national highways like Mumbai Ahmedabad, Mumbai Pune, and Mumbai Nashik, Navi Mumbai International Airport, Jawaharlal Nehru Port Trust, Mumbai Transharbour Project; Delhi- Mumbai dedicated Freight Corridor, and Revas Port. Coastal highway from Revas in Raigad district to Reddy in Sindhudurg district will cost other Rs. 9,573 crores. Mr. Fadnavis has also announced Asian Development Bank funded projects of around Rs. 4,000 crores to construct 468 kms of road on EPC terms and other around 7,500 kms of roads costing Rs. 90,000 crores on Hybrid Annuity Model. In financial year 2023-24, Rs. 14,225 crores is allocated for roads and bridges of around 10,125 kms and 1,203 bridges.
On the airports front the Shinde – Fadnavis Government is equally determined to connect major cities for air traffic. A new passenger terminal at Shirdi airport with a budget of Rs. 527 crores is proposed in the budget. Maharashtra Government proposes to build an airport at Sambhajinagar and Rs. 734 crores are allocated for the land acquisition. Similarly, the government has proposed a new international airport at Purandar. The Government also intends to expand Nagpur International Airport. The government has also allocated Rs. 100 crores for the MIHAN project coming up in Nagpur. Development of Amravati and Akola airports has also been announced.
After roads and airports, metro has become the new focus area for the state government. Maharashtra Government has allocated around Rs. 40,000 crores for metro projects. Along with new projects in Nashik, Nagpur, Pune – Pimpri Chinchwad, Mumbai and Thane are also getting new metro lines. 43.8 kms second phase of Nagpur Metro costing Rs. 6,708 crore is approved. Other 23.3 km Hinjewadi to Shivajinagar Metro Rail in Pune will entail an investment of Rs. 8,313 crores. Mumbai will get three new lines – Line 10 from Gaimukh to Shivaji Chowk, Mira Road, of 9.2 kms costing Rs 4,476 crore, Line 11 from Wadala to Chhatrapati Shivaji Maharaj Terminus, of 12.77 kms costing Rs 8,739 crores, and Line 12 from Kalyan to Taloja, of 20.75 kms costing Rs 5,865 crores.
Such a huge investment in infrastructure in the state will improve the state’s capability to withstand and service rising population and logistical requirements. This in turn will trigger industrial growth in the state and create employment opportunities in the state. This is the formula for economic growth in the state. Maharashtra Budget 2023 provides the right impetus triggering economic development in the state.
Sumeet Mehta is a Mumbai-based Chartered Accountant.