Maharashtra Budget 2026: Farm loan waiver, Metro expansion in Rs 7.69 lakh-cr plan

The government has projected revenue receipts of ₹6,16,099 crore and revenue expenditure of ₹6,56,651 crore, resulting in a revenue deficit of ₹40,552 crore. The fiscal deficit is estimated at ₹1,50,491 crore.

Despite the government’s emphasis on increasing capital investment, the budget estimates for 2026-’27 show capital expenditure at ₹1,12,815.70 crore, lower than the ₹1,17,376 crore revised estimate for 2025-’26, indicating a cautious spending approach even as the state pursues major infrastructure expansion.

Presenting the budget, which he dedicated to late deputy CM Ajit Pawar, Fadnavis said the government’s development strategy is based on four pillars — progressive growth, sustainability, inclusiveness and good governance under the broader vision of “Viksit Maharashtra 2047”.

Loan waiver

One of the biggest announcements was the launch of the Punyashlok Ahilyadevi Holkar Shetkari Karjamafi Yojana, under which farmers with crop loan arrears as of September 30, 2025 will be eligible for a waiver of up to ₹2 lakh.

Farmers who repay their loans regularly will receive an incentive grant of ₹50,000. The government said the move is aimed at easing farm debt while also strengthening the rural banking system.

A committee headed by MITRA CEO Praveen Pardesi has been tasked with determining the final number of beneficiaries and the total financial burden on the state. Officials said preliminary data collected from banks shows around 28 to 30 lakh farm loan accounts, including about 20 lakh accounts of regular loan payers.

The loan waiver was one of the key promises made by the ruling Mahayuti alliance during the Assembly elections and had also been demanded by farmer groups in recent months.

“As of now, the committee has collected information of about 28 to 30 lakh loan accounts from banks. Out of these around 20 lakh accounts are of those who regularly pay the farm loan. But final number is yet to be calculated,” Fadnavis said while addressing a press conference after presenting the budget. He added that during the previous farm loan waiver, about ₹20,000 crore was spent on loan relief and ₹15,000 crore on incentives.

With a strong focus on urban development, the budget projects that by 2047 the state’s urban population will reach 70 per cent, with cities contributing 75 to 80 per cent of the Gross State Domestic Product.

“To achieve sustainable urban development in the state, it is planned to establish more than 10 capable regional development authorities, develop more than 50 well planned multi-purpose urban clusters, transport oriented development, and 100 per cent digitisation of urban local self government services,” the budget document stated.

Infra development

Infrastructure development remains a major focus of the government’s plan. The state aims to build 1,200 kilometres of Metro rail network and over 6,000 kilometres of expressways across Maharashtra.

Among the major projects is the ₹23,487-crore Mumbai Metro Line 11 corridor from Wadala to Gateway of India, which is also proposed to be extended to Bandra suburban station and Bandra Terminus. Another major project is Metro Line 8 connecting Mumbai airport with Navi Mumbai International Airport.

To ease congestion in the Mumbai Metropolitan Region (MMR), the government plans to build a network of underground road tunnels in Mumbai and Pune, while the Sewri Worli connector is expected to be completed by September 2026.
The state has also proposed developing “Third Mumbai” around the Sewri Nhava Sheva area and a “Fourth Mumbai” near Vadhavan in Palghar district as new economic and logistics hubs.

Welfare schemes

On the welfare front, the government said the Mukhyamantri Majhi Ladki Bahin Yojana for women will continue with adequate funding. The budget also aims to create 25 lakh additional women entrepreneurs under the Lakhpati Didi scheme, while a new policy for the welfare of single women will be introduced.

In the agriculture sector, ₹20,000 crore has been allocated for the free electricity scheme for farmers using water pumps up to 7.5 HP. The government also plans to introduce a pilot project in 75 villages using artificial intelligence to provide farmers with real time information on weather, crops and soil health.

Revenue boost

To boost revenue, the government proposed an increase in environmental tax on older private vehicles. The tax on two wheelers with BS 4 and older emission standards will increase from ₹2,000 to ₹4,000, while the tax on petrol cars will rise from ₹3,000 to ₹6,000 and diesel cars from ₹3,500 to ₹7,000.

Fadnavis said the state aims to become a $5 trillion economy by 2047, with major expansion planned across agriculture, industry and services. The government also plans to develop cities such as Mumbai, Pune and Nagpur as key economic growth centres and strengthen the startup ecosystem.

The budget also outlines department wise allocations under the state level annual plan for 2026 27, with the total outlay pegged at ₹2,08,886 crore. The energy sector has received the highest allocation at ₹27,963 crore, followed by public works and roads with ₹26,218 crore.

The Women and Child Development department has been allotted ₹24,231 crore, reflecting the government’s continued focus on welfare programmes.

Major allocations have also been made for water resources at ₹16,569 crore, rural development at ₹13,651 crore and urban development at ₹11,054 crore. Other sectors receiving significant funding include agriculture, planning, public health and social welfare departments, indicating a mix of spending on infrastructure development, welfare schemes and administrative services.

Tribute to Ajit Pawar

The chief minister dedicated the budget to former deputy chief minister Ajit Pawar, announcing that a memorial will be built in his honour and a “Dynamic Civil Service Award” instituted in his name. He also announced that 2026 27 will be celebrated as the Year of Social Equality and Harmony.