Maharashtra’s Budget for 2025-26 underscores escalating fiscal challenges, with widening revenue and fiscal deficits coupled with a slowdown in revenue growth. The revised estimates (RE) for 2024-25 and the budget estimates (BE) for 2025-26 reflect increasing spending pressures, prompting concerns about the state’s financial sustainability.
Deputy Chief Minister and Finance Minister Ajit Pawar presented the budget on Monday, highlighting that revenue receipts are expected to grow from ₹4,99,463 crore in 2024-25 (BE) to ₹5,36,463 crore (RE), which represents a 7.41 percent increase. However, the growth rate is anticipated to decelerate to 4.57 percent in 2025-26, reaching ₹5,60,963 crore.
On the other hand, revenue expenditure is increasing at a quicker pace—from ₹5,19,514 crore in 2024-25 (BE) to ₹5,62,998 crore (RE), marking an 8.38 percent rise. The budget for 2025-26 estimates revenue expenditure at ₹6,06,855 crore, which is a 7.80 percent increase from the previous year.
The revenue deficit has surged, increasing from ₹20,051 crore in 2024-25 (BE) to ₹26,536 crore (RE), a significant 32 percent rise. Projections indicate that this deficit will escalate further to ₹45,892 crore in 2025-26, reflecting an increased reliance on borrowings to fund revenue expenditures.
The fiscal deficit, initially estimated at ₹1,10,355 crore in the 2024-25 budget, has risen to ₹1,32,873 crore in the revised estimates. The budget for 2025-26 estimates it at ₹1,36,234 crore, showing a smaller increment, which suggests efforts towards fiscal consolidation.
“The government has successfully maintained the fiscal deficit below 3 percent of gross State domestic income as mandated by the Fiscal Responsibility and Fiscal Management Act. Additionally, the state’s revenue deficit has remained consistently below 1 percent of gross State income,” Ajit Pawar stated.
Pawar also announced that Maharashtra plans to unveil its New Industrial Policy 2025, with the goal of attracting investments worth ₹40 lakh crore and generating 50 lakh jobs over the next five years. The policy will align with the new labour code introduced by the Central government and aims to create dedicated logistics infrastructure across 10,000 acres to foster industrial growth.
The Mumbai Metropolitan Region (MMR) will be developed into a premier economic hub, with seven global business centers planned for locations including Bandra-Kurla Complex, Kurla-Worli, Wadala, Goregaon, Navi Mumbai, Kharghar, and Virar-Boisar. The objective is to grow MMR’s economy from $140 billion to $300 billion by 2030 and reach $1.5 trillion by 2047.
Gadchiroli is set to emerge as a steel production hub, with an initial ₹500 crore allocated for infrastructure development. A Package Scheme of Incentives totaling ₹6,400 crore has also been proposed.
Maharashtra aims to reduce electricity costs by ₹1.13 lakh crore over five years through various 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 spur economic and technological advancements.
Pawar unveiled a host of ambitious infrastructure projects, such as ports, airports, highways, and metro expansions, all designed to enhance connectivity and drive economic growth. The Vadhavan Port in Palghar, where the state holds a 26 percent stake, will be integrated with the Mumbai-Ahmedabad bullet train station and the Samruddhi Mahamarg. Additionally, a floating jetty at Kashid in Raigad will soon be developed. An ₹8,400 crore coastal project funded externally and a ₹450 crore Maharashtra Sustainable Eco-Friendly Coastal Conservation Project have received approval.
The Amritkal State Road Development Plan (2025-2047) is set to be launched, encompassing 755 kilometers of roads under the Asian Development Bank Project and 6,000 kilometers under the Revised Hybrid Annuity Scheme (with a budget of ₹36,964 crore). The Chief Minister’s Village Road Scheme aims to connect 3,582 villages with 14,000 kilometers of cement concrete roads (₹30,100 crore). Plans for the Shaktipeeth Highway (₹86,300 crore) and an elevated route from Thane to Navi Mumbai are also in place.
Metro expansion continues with 143.57 kilometers of operational lines already in Mumbai, Nagpur, and Pune. The Navi Mumbai International Airport, currently 85 percent complete, is set to begin domestic flights in April 2025. Multiple airports, including those in Nagpur, Shirdi, Amravati (Belora), Ratnagiri, and Akola, are being upgraded. The Maharashtra State Road Transport Corporation (MSRTC) is converting 6,000 diesel buses to CNG/LNG models to promote eco-friendly transportation.
The Nanaji Deshmukh Krishi Sanjivani Project (Phase 2) will be implemented across 7,201 villages in 21 districts at a cost of ₹351.42 crore. A fund of ₹500 crore is designated to promote artificial intelligence in agriculture, aimed at benefitting 50,000 farmers over 1 lakh acres. Other initiatives include the Maharashtra Irrigation Improvement Programme (₹5,036 crore) and the Jalyukt Shivar 2.0 initiative (₹4,227 crore across 5,818 villages) to enhance water management.
River-linking projects such as Wainganga-Nalganga (₹88,574 crore), Nar-Par-Girna (₹7,500 crore), and the Tapi Mega Recharge project (₹19,300 crore) are expected to benefit thousands of hectares of land. The Mhaisal Lift Irrigation Scheme (₹1,594 crore) will incorporate a 200 MW solar power project, while the Gosikhurd National Project is on track for completion by June 2026.
The Mukhyamantri Baliraja Mofat Veej Yojna will ensure free electricity for 45 lakh agricultural pumps. The Mukhyamantri Saur Krishi Vahini Yojna 2.0 will guarantee daytime power supply in 27 districts. Additional initiatives include ₹4,300 crore earmarked for bamboo plantations, the ₹2,100 crore SMART agribusiness project, and the Magnet 2.0 project to foster sustainable agricultural businesses.
