Recently, Maharashtra stands as an important economic player in India, boasting a per capita income of ₹2.8 lakh, which exceeds the national average by over 50%. Despite this economic growth, the state grapples with a concerning decline in social indicators, particularly in health and education sectors. The upcoming Assembly elections on November 20, 2024, have intensified scrutiny on the government’s budget allocations and social welfare policies.
Economic Growth and Per Capita Income
Maharashtra’s economic performance has seen notable improvement over the past five years, achieving a rank of 8th among state of Indias in terms of per capita income. The increase of over 46% since 2019-20 marks a robust recovery, positioning the state firmly within the top tier of Indian economies. Interestingly, Maharashtra’s economic growth has not been driven by the manufacturing sector, which has seen a decline in its contribution to the Gross State Value Added (GVA) from 15% to 14.5%.
Budget Allocations – Health and Education
Despite the state’s economic success, budgetary allocations for health and education have not reflected this growth. In 2024-25, Maharashtra is projected to spend merely 4.6% of its total budget on health, ranking 16th among 19 states. This is a marginal improvement from five years ago, denoting a persistent issue in prioritising health funding. Similarly, the education budget has decreased from 18.6% to 16.4%, pushing the state down from 5th to 7th in educational expenditure rankings.
Social Indicators – Child Health and Women Empowerment
Maharashtra’s social indicators present a sobering picture, particularly regarding child health and women’s empowerment. The state ranked last in the share of wasted children (25.6%) for 2019-21, an important decline from its 13th position in 2005-06. Additionally, it ranked 22nd in stunted children, indicating a deteriorating situation for child nutrition and health. In terms of educational access for girls, Maharashtra is positioned 19th with approximately 80% school attendance.
Revenue Generation and Development Expenditure
Maharashtra has excelled in generating its own tax revenue, with over 68.7% of its revenue receipts coming from state taxes by 2024-25. This is the highest proportion among major state of Indias, although Haryana and Karnataka have surpassed it in this metric. The state also enjoys a relatively high capacity for developmental spending, with committed expenditures expected to decrease from 57.2% to 55.2% of revenue receipts, indicating an increased potential for infrastructure investment.
Infrastructure Development
The commitment to infrastructure development is evident, with Maharashtra allocating 12.7% of its total expenditure for this purpose in 2024-25, up from 9.6% in 2019-20. This increase signifies the state’s focus on enhancing its infrastructure to support economic growth and improve living standards.
Questions for UPSC:
- Discuss the economic indicators that reflect Maharashtra’s growth post-pandemic.
- Analyse the implications of declining budget allocations for health and education in Maharashtra.
- Evaluate the impact of social indicators on child health and women empowerment in Maharashtra.
- What strategies could Maharashtra adopt to improve its health and education sectors?
- Examine the relationship between Maharashtra’s revenue generation and its developmental expenditures.
