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Journalism of Courage
From rising revenue expenditure and debt stock to negligible increase in capital expenditure, Finance Minister Ajit Pawar presented Maharashtra Budget 2025 worth Rs 7 lakh crore that not only refrained from declaring any new significant scheme but also stayed silent on fulfilling several of the promises that the ruling alliance had made in its manifesto during the Assembly elections in 2024, such as enhancing the monthly outgo for Ladki Bahin Yojana and farm loan waiver among others.
The election year sops announced by the previous Mahayuti government and its implementation mid-year had impacted the financial health of Maharashtra resulting in rise of revenue expenditure by Rs 87,341.15 crore over the budget estimates of 2024-25. Meanwhile, the capital expenditure for 2025-26 has seen a marginal increase of Rs 385.89 crore over the budget estimate of Rs 92,779 crore for the year 2024-25.
Chief minister Devendra Fadnavis said that the budget is based on the five-point agenda of agriculture, industry, infrastructure, employment and social welfare.
“Maharashtra’s budget size has reached Rs 7 lakh crore, making it the largest budget in the country, after Uttar Pradesh. As a result, the state’s ability to avail loan has also increased. The budget has managed to keep the fiscal deficit at 2.7 per cent which had gone to 2.9 per cent. The state will progress keeping the five-point agenda ahead,” said Fadnavis.
Maharashtra’s overall debt stock also rose to Rs 8,39,275 crore for the financial year 2024-25 (revised estimate) compared to Rs 7,18,507 crore of the previous fiscal. The budget estimate for 2025-26 has taken the total debt stock to Rs 9,32,242 crore, which is 18.87 per cent to the state Gross State Domestic Product (GSDP), highest in the past five years.
Pawar presented a record 11th budget of Rs 7,00,020.20 crore, which recounted the ongoing infrastructure as well as other projects in the state and refrained from making any new announcements. Among the significant ones are setting up of a third airport near the upcoming Vadhvan port in Palghar district, development of strategy to use Artificial Intelligence (AI) and advanced technology in the agriculture sector and Rs 36,000 crore is proposed for CM Majhi Ladki Bahin scheme.
During the Assembly poll campaign, the Mahayuti had announced to increase the monthly outgo under the Ladki Bahin Yojana from Rs 1,500 to Rs 2100. It had also promised farm loan waiver. Two weeks ago, Chief Minister Devendra Fadnavis had announced an increase in the state’s share in PM Kisan Samman Nidhi by Rs 3,000. In a bid to manage the state balance sheet, Pawar refrained from making the announcements in the budget.
In a bid to explore state revenue options, the state proposed to levy motor vehicle tax at the rate of six per cent on electric vehicles priced above Rs 30 lakh. It also proposed to levy motor vehicle tax, compulsorily on a lump sum basis, at the rate of seven per cent on the price of vehicles used for construction such as cranes, compressors, projectors and excavators as well as on the price of Light Goods Vehicles (LGVs) carrying goods up to 7,500 kg in the state. The government expects that these taxes will provide it an additional revenue of around Rs 1,000 crore.
State’s revenue expenditure as per the 2025-26 (BE) has risen to Rs 6,06,854.68 crore compared to Rs 5,19,513.53 crore of 2024-25 (BE). The total revenue deficit of the state has risen to Rs 45, 890.86 crore, more than double when compared to Rs 20,050.69 crore of 2025-25 (BE). The state stares at a fiscal deficit of Rs 1,36,234.62 crore compared to Rs 1,10,355.22 of 2024-25 (BE).
“It is essential to achieve growth in the four key factors — private investment, public investment, consumer expenditure and exports — to boost the ‘vikas chakra’ of the economy… The government’s investment in infrastructure, along with various incentives provided to industries, is attracting significant domestic and foreign direct investment,” said Pawar in his budget speech.
However, the state has witnessed a marginal increase in its capital expenditure. In 2025-26 (BE) the capital expenditure is Rs 93,165.52 crore while it was Rs 92,779.63 crore in 2024-25 (BE). As per the revised estimates of year 2024-25, the capital expenditure is pegged at Rs 1,09,031.48 crore.
“The government has been successful in keeping the fiscal deficit within three per cent of the Gross State Domestic Product as per the Fiscal Responsibility and Budget Management Act. The state’s revenue deficit has consistently remained below one per cent of the Gross State Domestic Product,” Pawar said.
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