The cost of attending the World Economic Forum (WEF) Summit in Davos is expected to be around Rs 50 crore. While there is a consensus on the importance of representing our state on an international platform, one must question how we can justify such an expenditure given our current financial situation. A delegation of just four or five individuals, including the chief minister and the industries minister, should suffice. What is the rationale behind such an extravagant trip? The state is already burdened with a debt of Rs 7 lakh crore, leaving insufficient funds even for essential commitments.
Our treasury is in disarray, so why should we be concerned about this “pleasure tour” in Davos? Is it really necessary to approach industrialists from our own country abroad to encourage them to invest in Maharashtra? It would be far more practical to meet them within India or to invite them to Maharashtra instead. Clearly, our state cannot afford this extravagance. Chief Minister Devendra Fadnavis is set to visit Davos from January 20 to 24 for the summit. Last year, the Maharashtra Industrial Development Corporation allocated Rs 34 crore for this visit. However, a legal notice for Rs 1.58 crore was subsequently issued to the Maharashtra government by a Swiss company for unpaid services rendered at the Forum.
The law firm, Juris Wiz, representing the Swiss organisation, Skah Gambh, sent this notice to the then-Chief Minister Eknath Shinde along with other officials. Even the Union Ministry of External Affairs was informed about this issue. Given this precedent, what does the government aim to achieve by going to Davos again this year? Is this not a misuse of public funds? Critics argue that business leaders often engage in mere lobbying and that there is no need to invite them here.
Before leaving for Davos, Chief Minister Fadnavis emphasised, "The World Economic Forum gathers global business and political leaders, fostering networking and the exchange of ideas. I intend to leverage this opportunity for significant investment networking and have scheduled numerous important meetings with business and global leaders. I am confident we will attract large-scale investments to Maharashtra." The entire cost of his trip will be borne by the Maharashtra Industrial Development Corporation.
Last year, the state signed investment agreements worth approximately Rs 3.5 lakh crore, spending Rs 34 crores in the process. However, the actual follow-through of these agreements remains questionable, as there have been no concrete developments reported. Historically, numerous grand investment agreements have been touted at Davos, only to fade away without any real outcomes. One must wonder what ultimately results from these trips—aside from pleasure excursions for politicians and officials. Assessing Maharashtra's Success at Davos During last year's World Economic Forum in Davos, a delegation of about 70 individuals, including the then Chief Minister Eknath Shinde, attended the conference. Allegations arose from Aditya Thackeray regarding participation of individuals unrelated to the trip—he challenged the government to disclose the names of those who funded their own travel and clarify their roles in the delegation. This issue was overlooked. The government continuously claims that attending Davos results in significant investments, yet last year, projects such as Vedanta-Foxconn and Tata-Airbus were ultimately relocated to Gujarat, despite initial agreements to invest in Maharashtra.
The apparent inability of BJP leaders to acknowledge the loss of these projects speaks volumes about their prioritisation and commitment to the state. Past experiences show that significant investment agreements often do not translate into actual benefits for Maharashtra.
Maharashtra's financial crisis
The state of Maharashtra is undergoing severe financial challenges. According to government data, the fiscal deficit as a percentage of Gross State Domestic Product (GSDP) rose from 1.85 per cent in 2022-23 to 2.77 per cent in 2023-24. Similarly, the debt stock against GSDP is projected to increase from 17.26 per cent in 2022-23 to 18.91 per cent in 2026-27. The anticipated revenue for FY25 is Rs 4.99 lakh crore, and the additional burden from welfare schemes, particularly for farmers and women, poses significant fiscal pressure.
With substantial portions of revenue allocated to salaries, pensions, and interest payments, the opportunity for developmental projects is severely diminished. Recent patterns indicate a trend of borrowing without substantial investment in infrastructural or developmental projects, leaving the state in a precarious financial position. Rethinking the Need for Extravagance Attending the Davos World Economic Forum incurs significant costs amounting to approximately Rs 50 crore, which is hard to justify under current circumstances. A more efficient delegation should include only essential officials—the chief minister and the industry minister.
Comparisons to previous administrations illustrate that focused, minimal delegations can still secure major investment agreements. Fadnavis has taken on additional financial responsibilities that could further strain the state's already precarious budget. The state must critically assess the true value of these foreign trips versus the pressing needs at home. Given the current economic scenario, can we genuinely afford this "pleasure tour" in Davos?
The author is the spokesperson and public relations head of the Shiv Sena Uddhav Balasaheb Thackeray party
