Daijiworld Media Network - Mumbai
Mumbai, Jun 22: Facing increasing pressure on its finances due to rising debt and a widening fiscal deficit, the Maharashtra government on Monday presented supplementary demands worth Rs 97,706.40 crore for the remaining period of the 2026-27 financial year.
Chief Minister Devendra Fadnavis, who also oversees the Finance and Planning departments, said a significant portion of the additional expenditure would be directed towards the state's farm loan waiver scheme and key infrastructure projects.
Out of the total amount, Rs 20,552 crore has been earmarked for the government's farm loan waiver programme. The entire scheme, estimated at Rs 36,585 crore, is expected to benefit around 56 lakh farmers across Maharashtra.
Defending the decision, Fadnavis said the initiative was introduced solely to support distressed farmers and had no connection with electoral considerations.
The state had earlier presented a Rs 7.60 lakh crore Budget for 2026-27 and subsequently sought supplementary demands of Rs 11,552 crore during the Budget Session earlier this year.
According to government estimates, Maharashtra's fiscal deficit is projected at Rs 1.50 lakh crore, while the revenue deficit is expected to reach Rs 40,000 crore. The state's total public debt is likely to touch Rs 11 lakh crore by the end of the current financial year.
A substantial share of the fresh allocations has been directed towards transport and infrastructure development. The government has proposed a loan of Rs 3,372 crore to Mumbai Metropolitan Region Development Authority for metro rail projects.
Additionally, Rs 4,550 crore has been allocated for the Thane-Borivali twin tunnel project and the Orange Gate underground road corridor.
The government has also set aside Rs 800 crore for urban local bodies under the Urban Infrastructure Development Fund (UIDF), which will be used to distribute loans received from the National Housing Bank.
Under the Central government's Special Assistance Scheme for Capital Investment, Maharashtra has earmarked Rs 9,934 crore for development projects through interest-free loans. Another Rs 350 crore has been allocated as the state's equity contribution towards Mumbai Metro projects.
The government has further approved an additional Rs 1,000 crore as share capital support for Maharashtra State Infrastructure Development Corporation.
Other allocations include Rs 181 crore for civil, furniture and electrical works at the Air India building.
In the power sector, Rs 3,000 crore has been earmarked for payment of interest on loans taken by Maharashtra State Electricity Distribution Company, while Rs 5,000 crore has been allocated towards repayment of the utility's outstanding loans.
The government has also set aside Rs 4,000 crore to clear electricity bills of state government offices under a composite billing system and Rs 1,750 crore to address deficits arising under the Minimum Support Price (MSP) scheme.
In the social welfare sector, Rs 1,734 crore has been allocated for the payment of honorariums, salaries and operational expenses under the Anganwadi Services Scheme.
The state has also approved Rs 100 crore for constructing new administrative buildings as part of the expansion of the Vidhan Bhavan complex in Nagpur.
Meanwhile, Rs 28 crore has been earmarked for the digitalisation project of the Maharashtra Legislature Secretariat, while Rs 21 crore has been allocated to provide eco-friendly vehicles under a scheme aimed at promoting self-employment opportunities for persons with disabilities through mobile shops on wheels.
The supplementary demands underscore the government's attempt to balance welfare commitments and infrastructure expansion, even as concerns grow over Maharashtra's rising debt burden and fiscal sustainability.