Daijiworld Media Network - Mumbai
Mumbai, Mar 17: Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar on Monday urged opposition leaders to refrain from portraying a negative image of the state's economy, cautioning that such rhetoric could discourage potential investors.
Addressing the Maharashtra Assembly during a debate on the 2025-26 budget, Pawar dismissed concerns over rising revenue and fiscal deficits, asserting that the state’s financial position remains stable. He reaffirmed the government's commitment to fulfilling its promises following the MahaYuti alliance's electoral victory and called for collaborative efforts to drive economic growth.
Pawar detailed Maharashtra’s financial outlook, noting that the estimated revenue deficit of Rs 45,891 crore, fiscal deficit of Rs 1.36 lakh crore, and total debt stock of Rs 9.32 lakh crore are all within permissible limits relative to the state’s projected Gross State Domestic Product (GSDP) of Rs 49.39 lakh crore. He attributed the rise in GSDP to the government’s increased infrastructure spending on metro projects, roads, and highways.
Highlighting fiscal discipline, he pointed out that Maharashtra's debt-to-GSDP ratio remains below 20 per cent—alongside Gujarat and Odisha—compared to approximately 28 per cent in other states. He further emphasized that the state's interest payment ratio of 10-11 per cent is well within NITI Aayog's recommended 13 per cent limit.
Pawar refuted opposition claims that welfare and development schemes introduced before the assembly elections would be discontinued. He assured that flagship initiatives like the 'Ladki Bahin Yojana' would continue without financial constraints. However, he acknowledged that certain pandemic-era schemes would undergo review, without specifying which programs might be affected.
To bridge the revenue deficit, the government aims to boost revenue collection while cutting unproductive expenses and curbing tax evasion. Pawar projected an increase of Rs 5,000 crore to Rs 19,000 crore in state earnings through higher collections from stamp duty, registration fees, excise duty, and state GST by the end of 2025-26. He reiterated his focus on strengthening state GST and excise revenue to narrow the fiscal gap.
Outlining Maharashtra’s long-term vision, Pawar underscored the government’s goal of achieving ‘Viksit Maharashtra, Viksit Bharat’ by 2047. He emphasized that large-scale infrastructure investments would create jobs, enhance revenue, and sustain economic growth.
He also expressed gratitude to the central government for the ‘Special Assistance to States for Capital Expenditure’ scheme, under which Maharashtra is set to receive a 50-year interest-free loan. The state is expected to secure Rs 12,000 crore under this initiative by March 31, 2025.