RBI Grade BNABARD ESISEBI
Key Developments
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- Discontinuation of ₹1 Crop Insurance Scheme:
- The state government is winding up the ambitious scheme launched in 2023.
- A revised version will be introduced with the kharif season in May 2025.
- Reasons for Scrapping the Scheme:
- The scheme was plagued by irregularities, including 4.5 lakh fake claims.
- Financial burden: The scheme cost ₹10,500 crore, compared to ₹3,500 crore under the previous PM Crop Insurance Scheme.
- Low payout despite high premium costs.
- Fiscal deficit concerns: Maharashtra’s fiscal deficit stands at ₹1.33 lakh crore in FY2024-25.
- Fraudulent Applications & Measures Taken:
- Claims were filed for non-existent crops on government, temple, and dam lands.
- 96 Common Service Centres (CSCs) suspended for submitting false applications to earn processing fees.
- ₹80 crore saved by identifying fraudulent applications.
- Wider Economic Implications:
- The government has also scrapped the farmer loan waiver due to budget constraints.
- Major welfare schemes like power subsidies, Ladki Bahin payout, and state employee salaries have led to financial strain.
- Maharashtra’s debt is projected to reach ₹9.32 lakh crore by FY2025-26.
- Future Strategy:
- New policies will focus on long-term agricultural infrastructure like drip irrigation, farm ponds, and mechanized sowing.
- The government aims to cut unproductive expenses while maintaining essential farmer support programs.
Maharashtra’s decision to scrap the ₹1 crop insurance scheme reflects deepening fiscal challenges. The government is now shifting towards sustainable agricultural investments while cutting populist spending to balance its finances.
