On the eve of the first anniversary, tensions between the BJP and the Shiv Sena erupted into a war of words. The Sena threatened to pull out of the government; Fadnavis countered by alleging that the Sena was capable of doing anything to stay in power, including making terror threats and political compromises. He also likened it to a theatre troupe. In turn, Sena chief Uddhav Thackeray warned the government that if it failed to control the soaring prices of pulses before Diwali, it should be ready to face the consequences.
Rewind to 2014. Following a brief fallout during the state's Assembly polls, both the BJP and the Shiv Sena joined hands to run the government. But tensions simmered, hampering the functioning of the government and left the bureaucracy confused.
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Fadnavis - said to be Prime Minister Narendra Modi's choice - started his tenure as chief minister on a promising note. A year down the line, he is struggling to fulfil his promises, largely due to the state's financial constraints.
Maharashtra's gross domestic product growth declined to 5.7 per cent in 2014-15 from 7.3 per cent in 2013-14 and 7.8 per cent in 2012-13. Meanwhile, public debt soared to Rs 3.50 lakh crore. Repayment of loans is also a major headache for the government.
Two successive droughts and untimely rainfall have added to the state's financial burden, as it shelled out Rs 8,000 crore for drought relief, with an equal amount to be mobilised over time. The government will also announce a drought cess to raise Rs 1,600 crore.
The state's revenue deficit estimated at Rs 3,757 crore in the annual budget is expected to cross Rs 14,000 crore by the end of the current fiscal. The abolition of the local body tax, which was imposed on traders with turnover of more than Rs 50 crore, and the cancellation of toll tax at more than 60 locations have hit the treasury. The government is now fervently hoping that Parliament passes the Goods and Services Tax Bill and enforces the law from April 2016. Understandably, Fadnavis has been going slow on his promise to make Maharashtra toll-free.
Left with little option, the government is set to incur fresh debt in three years. During the remaining period of the current fiscal, the government proposes to raise Rs 33,000 crore, according to the norms set by the Reserve Bank of India. It is also exploring options such as monetisation of resources and taking low-interest loans from Japan International Cooperation Agency, Asian Development Bank and KfW Development Bank.
Although Fadnavis is optimistic about reviving the state's economy, few share his enthusiasm. The Congress has blamed the state government for sacrificing fiscal prudence by resorting to populist slogans. The Nationalist Congress Party (NCP), which handled the state's finance portfolio from 1999 to 2014, has slammed the present government's handling of finances.
Fadnavis claims the government's initiatives to market the Make In Maharashtra concept have helped the state receive investment proposals worth Rs 1 lakh crore in total from Foxconn, General Motors, Ford, Chrysler, Blackstone and Ikea. The number of approvals needed for a project has been reduced to 37 from 76 and the time taken for these nods has also been cut. Despite this, Maharashtra faces tough competition from the other states.
Mumbai's infrastructure development is on fast track. Fadnavis has promised to build 108 km of Metro network by 2019, besides implementing the Rs 9,500-crore Mumbai Coastal Road Project and the Rs 11,000-crore Mumbai Trans Harbour Link Project.
Tackling the issue of farmers' suicides - more than 1,200 farmers have died since December last year in Vidarbha and Marathwada regions - remains a challenge for Fadnavis' government.
The chief minister, who also holds the crucial home department portfolio, has yet to get a grip on crime. The murder of rationalists Narendra Dabholkar and Govind Pansare have embarrassed the government. Fadnavis had promised zero political interference in the functioning of the administration, especially the police force. And yet the government transferred 51 Indian Police Service officers in the last six months without the recommendation of the Police Establishment Board.
Shiv Sena has adopted a stance that projects it as being more nationalist than the BJP. It has accused the government of compromising with the NCP, a party that Fadnavis himself had dubbed the "Naturally Corrupt Party". Fadnavis has said the government will not spare anybody when it comes to corruption, but has also made it clear that the NCP and its president, Sharad Pawar, are the BJP's rivals but not its enemy, indicating there is room for political alignment if the Shiv Sena quits the government.
Sparring between the allies is expected to escalate in the run-up to the Brihan Mumbai Municipal Corporation (BMC) election slated for 2017. The BMC is considered to be the Shiv Sena's lifeline and it wants to maintain its hold on the corporation even as the BJP hopes to take control of it alone.
For the moment though, the BJP and the Shiv Sena have little option but to stay together.