Maharashtra Budget 2025-26: A Detailed Analysis

The Maharashtra Budget 2025-26 was tabled by Deputy Chief Minister Ajit Pawar, who holds the Finance portfolio. This budget comes after the landslide victory of the Mahayuti government in the assembly elections and is marked by severe financial constraints. The state is facing its highest-ever debt projection of Rs 9.3 lakh crore and the steepest revenue deficit, estimated at Rs 45,891 crore for the fiscal year 2025-26. Due to these financial challenges, the budget does not introduce any big-ticket schemes and instead focuses on sustaining existing initiatives.

Financial Condition of Maharashtra

1. Rising Debt Burden

• The state’s total debt projection stands at Rs 9.3 lakh crore, which is Rs 2 lakh crore higher than the previous year (2024-25), when it was Rs 7.1 lakh crore.
• Compared to a decade ago, this figure has almost tripled.
• The fiscal deficit is estimated at 2.76% of Gross State Domestic Product (GSDP), while the debt-to-GSDP ratio is 18.7%, well within the prescribed 25% limit.

2. Widening Revenue Deficit

• The state’s revenue deficit (gap between revenue receipts and expenditure) is projected at Rs 45,891 crore, which is more than double last year’s estimate of Rs 20,051 crore.
• The government has limited financial flexibility, making it difficult to introduce new welfare schemes.

Key Budget Highlights

1. Existing Welfare Schemes Over New Announcements

• The budget focuses on continuing existing welfare schemes rather than launching new initiatives.
• The Mukhya Mantri Majhi Ladki Bahin Yojana, a flagship scheme, saw a reduction of Rs 10,000 crore in its budget allocation compared to last year.
• The total allocation for this scheme in 2025-26 is Rs 36,000 crore.
• The promised increase in the stipend under this scheme from Rs 1,500 to Rs 2,100 per month has been deferred.

2. Farm Loan Waiver Deferred

• The Mahayuti government had promised a farm loan waiver in its poll manifesto, but it has not been included in this year’s budget.
• Instead, efforts have been made to keep ongoing agricultural schemes running.

3. Increase in District Annual Plan

• To strengthen local governance, the district annual plan has been hiked by 11%, increasing from Rs 18,165 crore to Rs 20,165 crore.
• This is significant as local body elections are approaching.

4. Social Justice Initiatives

The budget has made significant allocations for Scheduled Castes (SCs) and Scheduled Tribes (STs):

• The SC component of the annual plan has been increased by 42%.
• The ST component has been hiked by 40%.

Revenue Generation Measures

1. New Taxes on Motor Vehicles

• The government has proposed new taxes on motor vehicles, which are expected to generate Rs 1,125 crore in revenue.

2. Increase in Stamp Duty

• Stamp duty on certain transactions has been increased to boost revenue collection.

Infrastructure and Development Projects

• The budget does not announce new infrastructure projects, especially in the road sector.
• The focus remains on ongoing projects, ensuring their timely completion rather than launching new ones.