Maharashtra’s debt would reach Rs 9.32 lakh crore as the new fiscal demands increased

Maharashtra’s projected public debt is expected to rise to Rs 9.32 lakh crore, which will put pressure on the state government’s finances as it looks for additional funds to maintain essential services.

On Tuesday, Chief Minister Devendra Fadnavis, who also holds the finance portfolio, introduced additional budget demands worth Rs 11,995.33 crore in the state Assembly. The latest proposal is significantly smaller than earlier demands as the government tries to contain a widening revenue deficit that has already reached nearly Rs 2 lakh crore following major expenditure approvals earlier this fiscal.

Of the total proposed amount, Rs 5,748.10 crore has been earmarked for revenue expenditure to meet operational costs. Another Rs 6,003.79 crore has been allocated for capital expenditure focused on infrastructure and long-term asset creation.

The Industries and Energy Department will account for the largest share and is targeting Rs 5,840 crore. Under this, Rs 3,262 crore has been earmarked for the power sector, while Rs 803 crore will go to small and village industries. Other notable allocations include Rs 1,431 crore for water supply and sanitation. Smaller facilities have been proposed for medical education, rural development and OBC welfare.

This conservative approach to expenditure comes after Fadnavis took over the finance portfolio following the death of Deputy CM Ajit Pawar.

Unlike previous meetings, where demands to the tune of tens of thousands of crores were made for new schemes, the current additional demands are limited to meeting existing obligations.

With the state’s debt burden reaching record levels, the government has shifted its focus to fiscal discipline in an effort to prevent the revenue deficit from widening further.

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