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Maharashtra’s debt burden set to soar to Rs 9.32 lakh crore

The state’s revenue expenditure as per the 2025-26 Budget Estimates (BE) has risen to Rs 6,06,854.68 crore compared to Rs 5,19,513.53 crore of 2024-25 (BE).

Devendra fadnavis, maharashtra budget, indian expressMaharashtra Chief Minister Devendra Fadnavis during the Budget session of state Assembly in Mumbai. (Express Photo By Ganesh Shirsekar)

Maharashtra’s debt stock is projected to rise by 11 per cent to Rs 9.32 lakh crore or 18.87 per cent of the Gross State Domestic Product (GSDP).

The Maharashtra government, in its Fiscal Policy Strategy Statement, attributed this significant increase in liabilities to its heavy investments in infrastructure and communication projects across the state.

On Monday, Finance Minister Ajit Pawar presented a Rs 7 lakh crore Budget for 2025-26.

The state aims to maintain the ratio of total government debt to Gross State Income (GSI) within a 25 per cent limit.

As of the 2023-24 financial year (actuals), the ratio of contingent liabilities to GSI stands at 17.84 per cent, with projections indicating that this could rise to 18.87 per cent by 2025-26—still well within the 25 per cent threshold.

The debt stock refers to the total outstanding liabilities of the state government at a given point in time. It includes all borrowings made by the state to finance its expenditures, fiscal deficits, and development projects.

Chief Minister Devendra Fadnavis claimed that only Maharashtra and another state have maintained the govt debt to GSI ratio at these levels, while all others have much higher government debt to GSI ratio. The chief minister added that the goverment has maintained the govt debt to GSI ratio at these levels despite the high allocation for Ladki Bahin Yojana.

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Furthermore, the ratio of interest on debt to state revenue for 2025-26 has been projected to increase slightly to 11.53 per cent from 10.6 per cent in 2023-24 and 10.19 per cent as per the revised estimates of 2024-25.

The government acknowledged that borrowing is necessary to fund its development initiatives.

“To support infrastructure modernisation and continued growth, further increases in government borrowings are expected in the 2024-25 financial year,” the statement noted.

The government is also taking steps to mitigate the impact of rising interest costs through more efficient debt management strategies.

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The state’s revenue expenditure as per the 2025-26 Budget Estimates (BE) has risen to Rs 6,06,854.68 crore compared to Rs 5,19,513.53 crore of 2024-25 (BE).

According to the revised estimate for the ongoing fiscal, the revenue expenditure is pegged at Rs 5,62,998.52 crore.

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).

Despite the focus on infrastructure growth in the state, budget 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.

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In recent years, Maharashtra has invested heavily in large-scale infrastructure projects, such as the development of the Mumbai Metropolitan Region, metro systems, airport and roads. Additionally, the launch of various welfare schemes, including Ladki Bahin Yojana, has further strained the state’s financial resources. There is set to be a further increase in government debt this year.

“It is proposed to raise a total of Rs. 1,55,403 crore in the financial year 2025- 26. Out of this, 80.44% of the loans will be raised from the open market at cheap rates. The net borrowing raised from the open market of Rs. 92,500 crore is 67.90% of the fiscal deficit,” the statement said.

Maharashtra’s debt burden has steadily increased over the years, reflecting the state’s growing investments in infrastructure and welfare initiatives.

Zeeshan Shaikh is the Associate Editor who heads The Indian Express' Mumbai reporting team. He is recognized for his highly specialized Expertise in analyzing the complex dynamics of Maharashtra politics and critical minority issues, providing in-depth, nuanced, and Trustworthy reports. Expertise  Senior Editorial Role: As an Associate Editor leading the Mumbai reporting team, Zeeshan Shaikh holds a position of significant Authority and journalistic responsibility at a leading national newspaper. Core Specialization: His reporting focuses intensely on two interconnected, high-impact areas: Maharashtra Politics & Urban Power Structures: Provides deep-dive analyses into political strategies, municipal elections (e.g., BMC polls), the history of alliances (e.g., Shiv Sena's shifting partners), and the changing demographics that influence civic power in Mumbai. Minority Issues and Socio-Political Trends: Excels in coverage of the Muslim community's representation in power, demographic shifts, socio-economic challenges, and the historical context of sensitive political and cultural issues (e.g., the 'Vande Mataram' debate's roots in the BMC). Investigative Depth: His articles frequently delve into the historical roots and contemporary consequences of major events, ranging from the rise of extremist groups in specific villages (e.g., Borivali-Padgha) to the long-term collapse of established political parties (e.g., Congress in Mumbai). Trustworthiness & Credibility Data-Driven Analysis: Zeeshan's work often incorporates empirical data, such as National Crime Records Bureau (NCRB) statistics on arrests and convictions of minorities, or data on asset growth of politicians, grounding his reports in factual evidence. Focus on Hinterland Issues: While based in Mumbai, he maintains a wide lens, covering issues affecting the state's hinterlands, including water crises, infrastructure delays, and the plight of marginalized communities (e.g., manual scavengers). Institutional Affiliation: His senior position at The Indian Express—a publication known for its tradition of rigorous political and investigative journalism—underscores the high level of editorial vetting and Trustworthiness of his reports. He tweets @zeeshansahafi ... Read More

Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues. Expertise Current Role: Special Correspondent, The Indian Express, Mumbai. Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands'). Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including: State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance. Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana). Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides). Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits. Unique Credentials & Trustworthiness Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects. Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission. Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards. Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra. He tweets @alokdesh ... Read More

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