Reading the Maharashtra verdict through a fiscal lens

Poll myopia needs an antidote of responsible fiscal leadership for long-term sustainable growth

- AJIT RANADE

Maharashtra at 14% has the biggest share of the nation's economic output. Its capital Mumbai is also the commercial and financial capital of the country. From this maximum city, the nation collects a whopping disproportionate share of direct taxes comprising of corporate and personal incomes. Mumbai's real estate is more precious than gold. The state's Jawaharlal Nehru Port is India's busiest container port handling about 60% of all containerised cargo, and among the top five ports in terms of total tonnage in the country. It is seamlessly connected to the dedicated freight corridors, with the eastern leg already functional and western leg to be operational soon. Hence it is crucial for India's exports.

The proposed Vadhavan port at the northern end of Maharashtra will be state-of-the-art, and among the top ten ports in the world when completed. Mumbai's 22-kilometre trans harbour bridge, commissioned earlier this year, is a crucial link between the island city and the mainland. This will lead to resurgence in real estate activity on both sides of the bridge and give an impetus to commercial activity.