Maharashtra’s total outstanding debt is projected to rise to Rs 11.02 lakh crore in 2026-27 as the government plans to borrow Rs 1.28 lakh crore. Despite rising liabilities, Chief Minister Devendra Fadnavis said the borrowing remains within prescribed fiscal limits
Minister of State for Finance Ashish Jaiswal (centre left), Deputy Chief Minister Sunetra Pawar (centre), and Chief Minister Devendra Fadnavis (centre right) at the Maharashtra Legislative Assembly before the Budget presentation on Friday. Pic/Sayyed Sameer Abedi
The state’s debt burden is set to rise further, with total outstanding liabilities projected to touch Rs 11,02,654 crore in the financial year 2026-27, according to the upcoming Budget estimates.
In 2025-26, the actual debt stood at Rs 9,73,989 crore, overshooting the earlier projection of Rs 9,32,242 crore. A similar pattern was observed in 2024-25, when the state’s debt climbed to Rs 8.39 lakh crore (Rs 8,39,275 crore) against a projected Rs 7.8 lakh crore, reflecting a widening gap between estimates and actual liabilities.
Speaking to reporters after the budget, Maharashtra Chief Minister Devendra Fadnavis claimed that the state’s borrowing is well within the prescribed limit. “The borrowing is within prescribed norms. Despite having several welfare schemes, the state has consistently maintained fiscal discipline,” the CM said.
Rs 9,73,989 cr
Maharashtra’s total actual debt in 2025-26
Biggest tax contributors
State GST
Rs 1.87 lakh crore
Stamp Duty & Registration
Rs 68,000 crore
Sales/Trade taxes
Rs 75,112 crore
State Excise
Rs 35,182 crore
Highlights of the Budget
Revenue
The state expects to generate Rs 160 crore from the increase in environmental tax on old non-transport (private) vehicles. A significant portion of the state’s revenue is committed to fixed obligations such as salaries, pensions, and interest payments. The government has allocated Rs 1,75,951 crore for salaries, Rs 92,379 crore for pensions, and Rs 70,055 crore for interest payments. Together, these three major heads account for 54.93% of the state’s total revenue receipts, indicating that more than half of the income earned by the government is already committed to these essential expenses.
Govt to borrow 1,28,665 crore
The Maharashtra government plans to borrow Rs 1,28,665 crore in 2026-27, taking the state’s total debt to nearly Rs 11 lakh crore, including about Rs 89,000 crore owed to the Government of India.
Higher tax on old vehicles
It has been proposed to increase environmental tax on non-transport (private) vehicles with BS-IV and below emission norms, raising the tax on two-wheelers from Rs 2000 to Rs 4,000; on petrol light motor vehicles from Rs 3000 to Rs 6000; and on diesel light motor vehicles from Rs 3000 to Rs 7000.
Boost to tourism
The state aims to increase tourist footfall from 16 crore to 38 crore by 2047.
Ajit Pawar memorial
A memorial and an award in the name of Ajit Pawar have been proposed to recognise his contributions to Maharashtra’s politics.
Faster connectivity
The Thane-Borivli connectivity project is expected to be completed by June 2028, significantly reducing travel time between the eastern and western suburbs.
Concrete roads for villages
Villages with a population of more than 1000 will be connected with concrete roads to improve rural connectivity and infrastructure.
EV promotion
Scrapping old vehicles having BS-IV and higher emission norms and purchasing new ones would result in a 16 per cent concession in motor vehicle tax, while scrapping old vehicles having BS-III and lower emission norms for a new vehicle would attract a 30 per cent discount.
Stamp Duty Act
Penal provision increased from Rs 5000 to up to Rs 1 lakh for conviction if an instrument is executed with insufficient stamp duty.
Environment Tax
The state expects to generate Rs 160 crore from the increase in environmental tax on old non-transport (private) vehicles.
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