In a welcome move for residents of the Mumbai Metropolitan Region, fuel prices are set to decrease as the Maharashtra government has decided to slash the Value-Added Tax (VAT). This announcement, made by Deputy Chief Minister and Finance Minister Ajit Pawar during the presentation of the Maharashtra Budget 2024-25, will see petrol become cheaper by 65 paise per litre and diesel by ₹ 2.60 per litre. This reduction comes as a result of decreasing the tax on diesel from 24 percent to 21 percent and petrol from 26 percent to 25 percent. The announcement comes ahead of the state assembly polls, which are anticipated to be held in October. Ajit Pawar clarified that the decision would only be applicable within the Mumbai Metropolitan Region. The minister added that the VAT cut would cost the state exchequer ₹ 200 crore. The Chief Minister, Eknath Shinde, confirmed that the VAT cut has been proposed in the budget, and will come into effect from July 1st, following its approval by the state legislative assembly and the council.
Beyond the fuel price relief, the Maharashtra Budget 2024-25 has also outlined several other key initiatives. These include a ₹ 1,500 per month allowance for women aged 21 to 60 years under the Mukhyanantri Majhi Ladki Bahin (CM My Beloved Sister) scheme. The government has also announced a ₹ 5000 per hectare bonus for farmers in Maharashtra who cultivate cotton and soybean. Additionally, all households are set to receive three free gas cylinders annually under the CM Anna Chhatra Yojan. The budget also includes an increase in the medical insurance limit for families from ₹ 1.5 lakh to ₹ 5 lakhs, an expansion of the Empanelled Hospitals network from 1000 to 1900, and a waiver of electricity bill dues for 44 lakh farmers in Maharashtra.
The monsoon session of the Maharashtra Assembly commenced on Thursday, June 28th, and will continue until July 12th. The budget announcement and subsequent debate during this session will undoubtedly dominate the political landscape in the state leading up to the upcoming elections.
