Consider Maharashtra’s economic growth when discussing its debt: CM Devendra Fadnavis
Electricity tariffs are expected to come down significantly over the next five years, said CM Devendra Fadnavis during a debate on the Maharashtra Budget in the Assembly.
3 min readMumbaiUpdated: Mar 11, 2026 05:54 PM IST
Maharashtra CM Devendra Fadnavis said the debt-to-GSDP ratio stands at around 18 per cent, which is lower than that of several other states (File photo).
Maharashtra Chief Minister Devendra Fadnavis Wednesday asserted that the state’s finances remain stable despite a rise in borrowings, expressing confidence that Maharashtra will become the first $1 trillion economy in the country while announcing that electricity tariffs are expected to decline over the next five years.
Replying to the debate on the state budget in the Assembly, Fadnavis said the state’s economic expansion must be viewed alongside the increase in debt, as both have grown significantly over the past decade.
According to him, Maharashtra’s outstanding debt has risen from about Rs 3 lakh crore in 2013-14 to Rs 9.32 lakh crore, but during the same period, the state’s Gross State Domestic Product (GSDP) has expanded from around Rs 16 lakh crore to Rs 51 lakh crore.
The CM said the debt-to-GSDP ratio stands at around 18 per cent, which is lower than that of several other states, including Telangana, Karnataka, Andhra Pradesh, Kerala and Tamil Nadu.
Maintaining that the state still has borrowing capacity, Fadnavis said the key issue is ensuring that funds raised through borrowings are used for productive capital expenditure.
He rejected the Opposition’s allegations that welfare spending has weakened the Maharashtra’s finances, saying schemes such as the Ladki Bahin and free electricity for farmers have been implemented while maintaining fiscal discipline.
The fiscal deficit currently stands at around 2.78 per cent of the GSDP, while the revenue deficit is about one per cent, he said.
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Electricity tariffs
On electricity tariffs, Fadnavis said the government has taken steps to keep power costs low. Tariffs for households consuming 0–100 units are expected to decline by about 24 per cent over the next five years, while the average tariff is projected to fall by around 1.2 per cent annually.
He said Maharashtra’s electricity generation capacity currently stands at about 45,000 MW and is expected to increase to 82,000 MW by 2030, adding that contingency plans are in place to ensure an uninterrupted supply even if some projects face delays.
Industrial power consumption in the state grew by around 8 per cent last year, which is higher than the national average, he said.
Highlighting the state’s push for renewable energy, Fadnavis said the share of non-conventional sources in electricity generation is expected to reach 52 per cent by 2030 and 65 per cent by 2035.
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The government is also developing battery-based storage systems for green energy, for which Rs 1,650 crore has been allocated in the budget, while private investment of about Rs 3.12 lakh crore is expected in the sector.
Fadnavis said Maharashtra’s economy is currently estimated at about $660 billion and expressed confidence that the state will become the country’s first trillion-dollar economy in the coming years.
Vallabh Ozarkar is a Senior Correspondent with The Indian Express' Mumbai bureau, recognized as an authoritative and deeply knowledgeable voice on the politics, governance, and infrastructure of Maharashtra. With more than nine years of experience in major news organizations, his reporting delivers high standards of Expertise and Trustworthiness.
Expertise & Authority
Current Role: Senior Correspondent, The Indian Express, Mumbai bureau.
Geographical Specialization: Provides exclusive and detailed coverage of Maharashtra politics and governance, operating at the epicenter of the state's decision-making in Mumbai.
Core Authority: His reporting demonstrates deep Expertise across critical and often complex state matters, including:
Political Dynamics: In-depth analysis of the ruling coalition (Mahayuti) and opposition (MVA), internal party conflicts, and crucial election updates, including local body polls and municipal corporation tussles.
Governance & Policy: Focused coverage on significant state policies, such as the overhaul of Mumbai's 'pagdi system' (rent control for old buildings) and social welfare schemes (e.g., Ladki Bahin Yojana accountability).
Infrastructure & Development: Reports on major urban and regional infrastructure projects, including the Mumbai Water Metro, Uttan-Virar Sea Link, and Thane Metro development.
Administrative Oversight: Follows legislative actions, cabinet decisions, and reports on issues of accountability and alleged fraud within state departments.
Experience
Current Role: His role at The Indian Express—a leading national daily—validates the credibility and standard of his reporting.
Career Foundation: Prior to The Indian Express, Vallabh contributed to other major metropolitan news outlets, including the Mumbai Mirror and DNA - Daily News & Analysis, providing a solid foundation in rigorous urban and political journalism.
Evidence of Impact: His work consistently breaks down complex political developments and administrative failures, such as exposing discrepancies in government welfare schemes, cementing his reputation as a trusted source for ground-level, impactful news from Maharashtra.
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