Value-added tax (VAT) on petrol and diesel will be reduced in the Mumbai metropolitan region, Deputy Chief Minister Ajit Pawar announced as part of Maharashtra's budget.

"Tax on diesel is being decreased from 24% to 21 % for Mumbai region, effectively 2 rupees per litre less prices of diesel.

In Mumbai region, tax on Petrol being decreased from 26% to 25% which will effectively decrease rates of petrol by 65 Paise per litre," Pawar said.

Pawar expects the move to cost the state exchequer Rs 200 crore.

"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," Chief Minister Eknath Shinde said.

Pawar also said that three gas cylinders would be provided free of cost to all households under the CM Anna Chhatra Yojana provided by the Maharashtra government . The state of Maharashtra is up for assembly elections likely around September-October, and the Shinde-led Mahayuti government is looking to retain power.

MAHARASHTRA BUDGET KEY HIGHLIGHTS "We will provide Rs 5,000 per hectare bonus to all farmers for their crops of cotton and soybean in Maharashtra.

We will also give Rs Rs 5 per litre bonus to milk-producing farmers even after July 1, 2024.

The government has increased the monetary help in deaths due to animal attack, now the next of kins will get Rs 25 lakhs instead of Rs 20 lakhs provided earlier," Pawar said.

In the 2024-25 state Budget, Maharashtra Deputy Chief Minister Ajit Pawar introduced a financial aid program called "Mukhyamantri Majhi Ladki Bahin Yojana". Eligible women aged 21 to 60 will receive a monthly allowance of Rs 1,500 starting from July, four months ahead of the October state polls.

The scheme is allocated Rs 46,000 crore annually.

The Mahayuti government of Maharashtra, of which Pawar is a part, has been under pressure from ongoing protests over reservation.

Pawar in February presented a Rs 6,00,522 crore interim budget for Maharashtra.