Maharashtra budget 2024 highlights: Ajit Pawar cuts VAT for fuel in Mumbai, announces schemes and subsidies for women, farmers

Maharashtra government cuts VAT on fuel, announces various schemes in budget, including free LPG cylinders and electricity bill waivers.

The Maharashtra government has cut the value-added tax (VAT) on fuel in the Mumbai metropolitan region, making petrol cheaper by 65 paise per litre and diesel by ₹2.60 per litre. “The decision will come into effect from July 1,” Maharashtra’s Deputy Chief Minister and Finance Minister Ajit Pawar said while presenting the State’s budget. The move will cost the state exchequer ₹200 crore, he said.

Talking to reporters later, Chief Minister Eknath Shinde said, “The VAT cut has been proposed in the Budget. Once the Budget is passed by the State legislative assembly and the council, the decision will come into effect from July 1.” Deputy Chief Minister Devendra Fadnavis praised the Budget, saying, “It is not a poll-centric, but a realistic Budget.”

The decision to slash the VAT is seen to be significant, as the State will be going to polls soon as the tenure of the Maharashtra Assembly ends on November 26.

Mr. Pawar started the Budget presentation by chanting an abhang by the 17th-century bhakti saint Sant Tukaram Maharaj.

Mr. Pawar announced that over 44 lakh farmers in Maharashtra will get a waiver of electricity bill dues. He also said that the State government has decided to bear the burden of farmers’ electricity bills and to provide free electricity to agriculture pumps up to 7.5 horsepower capacity. “This will help 44.06 lakh farmers. A provision of ₹14.761 crore will be made available in the form of subsidy,” he said.

The State government has also noted subsidies worth ₹851.66 crore subsidy were provided to onion farmers, at a rate of ₹350 per quintal, in the year 2023-24. “A revolving fund of ₹200 crore each is being created for assured purchase of onion and cotton,” Mr. Pawar said.

Here are the highlights of the Budget: