Maharashtra: Burdened by debt, BJP govt puts poll promises on hold

Maharashtra’s BJP-led coalition government is struggling to implement the bombastic promises it made ahead of Assembly elections as it groans under a massive debt.

This was more than clear when its first Budget it tabled on Monday (March 10) revealed the highest debt projection in history — at Rs 9.3 lakh crore.

This is Rs 2 lakh crore more than the Rs 7.1 lakh crore in 2024-25. It is almost thrice as high as it was a decade ago.

Revenue deficit

The revenue deficit — the gap between income and expenditure — is also steepest, at an estimated Rs 45,891 crore for 2025-26. Last year, this stood at Rs 20,051 crore.

Naturally, the Budget offers no new big-ticket schemes.

The election pledge to hike the stipend in its flagship Mukhya Mantri Majhi Ladki Bahin Yojana from Rs 1,500 to Rs 2,100 a month and a farm loan waiver have been kept pending for another day.

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Ladki Bahin scheme

The Budget has focused on keeping existing schemes going and trying to keep its debt and fiscal deficit within prescribed limits.

Officials say the allocation for Ladki Bahin scheme, whose beneficiaries were earlier put at 2 crores but who are now being scrutinised and trimmed, is Rs 10,000 crores lower than last year.

The estimated allocation for 2025-26 is Rs 36,000 crore.

Local body elections

No fresh outlay has been earmarked for new infrastructure projects

Ahead of local body elections, the Budget has hiked the district annual plan by 11 per cent — from Rs 18,165 crore to Rs 20,165 crore.

At the same time, it has pushed up the proposed scheduled caste component of the annual plan by 42 per cent and of the tribal component by an estimated 40 per cent.

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Ajit Pawar hopeful

In a bid to generate revenue, the Budget has proposed new taxes, mainly related to motor vehicles, to generate Rs 1,125 crore. Stamp duty has been hiked on some transactions.

Maharashtra Deputy Chief Minister Ajit Pawar, who controls the finance portfolio, says the election promises will be implemented as and when the finances are stable.

The state’s fiscal deficit is estimated at 2.76 per cent of its GSDP. Also, the estimated debt is 18.7 per cent of GSDP while the prescribed limit is 25 per cent.