Maharashtra’s Budget for 2025-26 reveals increasing fiscal challenges, with revenue and fiscal deficits widening amid slower revenue growth. The revised estimates (RE) for 2024-25 and Budget estimates (BE) for 2025-26 indicate higher spending pressures, raising concerns over financial sustainability.
According to the Budget presented by Deputy Chief Minister and Finance Minister Ajit Pawar on Monday, revenue receipts are projected to rise from ₹4,99,463 crore in 2024-25 (BE) to ₹5,36,463 crore (RE), reflecting a 7.41 per cent increase. However, for 2025-26, the growth rate slows to 4.57 per cent, reaching ₹5,60,963 crore.
In contrast, revenue expenditure is increasing at a higher rate—from ₹5,19,514 crore in 2024-25 (BE) to ₹5,62,998 crore (RE), an 8.38 per cent rise. The Budget for 2025-26 pegs revenue expenditure at ₹6,06,855 crore, growing by 7.80 per cent over the previous year.
The revenue deficit has surged significantly, from ₹20,051 crore in 2024-25 (BE) to ₹26,536 crore (RE), marking a 32 per cent increase. It is projected to further escalate to ₹45,892 crore in 2025-26, indicating higher dependence on borrowings for revenue expenditure.
The fiscal deficit, which was pegged at ₹1,10,355 crore in the 2024-25 Budget, has shot up to ₹1,32,873 crore in the revised estimate. The 2025-26 Budget estimates it at ₹1,36,234 crore, reflecting a smaller increase, suggesting attempts at fiscal consolidation.
“The government has been successful in keeping the fiscal deficit below 3 per cent of gross State domestic income under the Fiscal Responsibility and Fiscal Management Act. Also, the State’s revenue deficit has consistently less than 1 per cent of gross State income” said Ajit Pawar.
International Economic Hub in MMR
Pawar said that Maharashtra is set to announce its New Industrial Policy 2025, aiming to attract investments worth ₹40 lakh crore and generate 50 lakh jobs over the next five years.
The policy will align with the new labour code introduced by the Central government. Additionally, the State plans to develop dedicated logistics infrastructure across 10,000 acres to enhance industrial growth.
The Mumbai Metropolitan Region (MMR) will be developed into an international-level economic hub, with seven global business centers in Bandra-Kurla Complex, Kurla-Worli, Wadala, Goregaon, Navi Mumbai, Kharghar, and Virar-Boisar. The goal is to expand MMR’s economy from $140 billion to $300 billion by 2030 and $1.5 trillion by 2047.
Gadchiroli is emerging as a steel hub, with ₹500 crore allocated for infrastructure development in the first phase. The Package Scheme of Incentives worth ₹6,400 crore has also been proposed.
Maharashtra aims to cut electricity costs by ₹1.13 lakh crore over five years through energy reforms. New initiatives include the Maharashtra Technical Textile Mission, an Urban Haat Center in Nagpur, and an Innovation City spanning 250 acres in Navi Mumbai to drive economic and technological advancements.
Infra development
Pawar announced a series of ambitious infrastructure projects, including ports, airports, highways, and metro expansions, aimed at boosting connectivity and economic growth.
The Vadhavan Port in Palghar district, where the State holds a 26 per cent share, will be integrated with the Mumbai-Ahmedabad bullet train station and Samruddhi Mahamarg. A floating jetty at Kashid in Raigad will also be developed soon. An ₹8,400 crore externally aided coastal project and the Maharashtra Sustainable Eco-Friendly Coastal Conservation Project (₹450 crore) have been sanctioned.
The Amritkal State Road Development Plan (2025-2047) is set for launch. 755 km of roads under the Asian Development Bank Project and 6,000 km under the Revised Hybrid Annuity Scheme (₹36,964 crore) are underway. The Chief Minister’s Village Road Scheme will connect 3,582 villages with 14,000 km of cement concrete roads (₹30,100 crore). The Shaktipeeth Highway (₹86,300 crore) and an elevated route from Thane to Navi Mumbai are also planned.
Metro expansion continues with 143.57 km operational lines in Mumbai, Nagpur, and Pune. The Navi Mumbai International Airport (85 per cent complete) will begin domestic flights in April 2025. Several airports, including Nagpur, Shirdi, Belora (Amravati), Ratnagiri, and Akola, are being upgraded. MSRTC will convert 6,000 diesel buses into CNG/LNG models for eco-friendly transport.
AI for Agriculture
The Nanaji Deshmukh Krishi Sanjivani Project (Phase 2) will be implemented in 7,201 villages across 21 districts at a cost of ₹351.42 crore. A ₹500 crore fund will promote artificial intelligence in agriculture, benefiting 50,000 farmers over 1 lakh acres. The Maharashtra Irrigation Improvement Programme (₹5,036 crore) and Jalyukt Shivar 2.0 (₹4,227 crore, 5,818 villages) will enhance water management.
River-linking projects include Wainganga-Nalganga (₹88,574 crore), Nar-Par-Girna (₹7,500 crore), and Tapi Mega Recharge (₹19,300 crore), benefiting thousands of hectares. The Mhaisal Lift Irrigation Scheme (₹1,594 crore) will get a 200 MW solar power project, while Gosikhurd National Project aims for completion by June 2026.
The Mukhyamantri Baliraja Mofat Veej Yojna will provide free electricity for 45 lakh agricultural pumps. The Mukhyamantri Saur Krishi Vahini Yojna 2.0 will ensure daytime power supply in 27 districts. Additional initiatives include ₹4,300 crore for bamboo plantations, the ₹2,100 crore SMART agribusiness project, and the Magnet 2.0 project for sustainable agriculture businesses.
