Maharashtra directs departments to cut spending by 20%, exempts Ladki Bahin, education, health

Maharashtra is facing a drought and global economic conditions remain uncertain. In view of this, the state government has begun preparing to rein in government spending. Chief Minister Devendra Fadnavis has directed all departments to cut expenditure by 20 per cent, it is learnt.

The Mukhyamantri Majhi Ladki Bahin Yojana, education, health and loan waiver have been kept out of this decision. Funds for schemes that touch ordinary citizens will thus be maintained even as economy is exercised. The government appears to be stressing this.

Drought-like conditions have developed in some parts of the state, making water supply, water conservation and fodder availability important issues. To keep the burden on the exchequer in check, the government has chosen to review the spending of various departments.

Fadnavis has asked departments to spend judiciously. Every department is expected to keep the 20 per cent cut target in mind while planning its expenditure. Given global economic uncertainty and the state's drought challenges, the government is stressing proper use of the funds available.

The Ladki Bahin scheme is reported to be exempt from the decision. It is said that the funds required for the scheme will not be cut. Eligible women receive financial assistance every month under the scheme. There had been discussion on whether the expenditure cut would affect the aid to beneficiary women. The stand to maintain the scheme's funds has therefore gained importance. However, the final picture on actual fund allocation, disbursal of instalments and provisions in the coming budget will become clear only after official announcements.

The education and health sectors have also been kept out of the cut. Directions have reportedly been issued to keep funds available for essential expenditure in these sectors. The government has prioritised them so that essential educational facilities, health services and key citizen-related schemes are not affected. Funds required for the loan waiver will also not be cut, it is learnt.

On road and irrigation projects, the government has stressed spending only as needed. Directions have reportedly been given to defer unnecessary expenditure on projects and use available funds effectively. As spending priorities are set, essential works and projects useful in drought conditions are likely to get importance.

Directions have been issued to prioritise measures such as water supply, water conservation and fodder schemes to deal with the drought. Reducing water scarcity in villages and ensuring fodder for livestock are key challenges at this time.

Overall, the state government's expenditure-cut policy shows an effort to control spending while preserving funds for key schemes. The target is a 20 per cent cut for all departments, and attention now is on how it is applied to the Ladki Bahin scheme, education, health, loan waiver and drought relief work.