Maharashtra Budget 2025-26: Ajit Pawar to present first Mahayuti government budget today, key things to watch for

This will be the first full-fledged budget of the Mahayuti government, which came to power late last year, and the 11th budget of Pawar’s career as the state’s Finance Minister.

Deputy Chief Minister and Finance Minister Ajit Pawar is set to present the Maharashtra Budget for the financial year 2025-26 in the state assembly today. This will be the first full-fledged budget of the Mahayuti 2.0 government, which came to power late last year, and the 11th budget of Pawar’s career as the state’s Finance Minister.

The budget is being presented in the backdrop of Maharashtra’s projected 7.3 percent economic growth for 2024-25, surpassing the national estimate of 6.5 percent. However, fiscal challenges remain as the state grapples with a rising debt burden, growing welfare expenditures, and a widening fiscal deficit.

Economic Outlook: Growth vs. Fiscal Strain

• Maharashtra’s economy is projected to grow at 7.3 percent in 2024-25, according to advance estimates.
• The industrial and services sectors have shown a slowdown, with projected growth rates of 4.9 percent and 7.8 percent, respectively.
• The real Gross State Value Added (GSVA) from agriculture and allied activities is expected to rise by 8.7 percent.
• The state's debt projection for 2024-25 stands at ₹7.8 lakh crore, with concerns over fiscal deficit rising beyond 3 percent of GSDP.

• The Mukhya Mantri Majhi Ladki Bahin Yojana has transferred Rs 17,505.90 crore to 2.38 crore beneficiaries till December 2024.
• Despite a Mahayuti poll promise, an increase in the Ladki Bahin stipend from Rs 1,500 to Rs 2,100 per month is unlikely in this budget.
• The government is expected to scrutinise and trim welfare scheme beneficiaries to manage financial constraints.
• CM Devendra Fadnavis has already announced an increase in the Namo Shetkari Samman Nidhi for farmers, from Rs 6,000 to Rs 9,000 per year.

• Maharashtra had introduced welfare schemes worth Rs 96,000 crore before the elections, adding to its fiscal strain.
• Additional supplementary budgetary demands post-election amount to Rs 1.37 lakh crore, the highest ever in the state.
• Fiscal deficit concerns have escalated, reaching Rs 1.1 lakh crore by July 2024 and estimated to hit Rs 2 lakh crore by October 2024.
• The PM’s Economic Advisory Committee reported Maharashtra’s national GDP contribution declined from 15.2 percent in 2010-11 to 13.3 percent in 2023-24.

• CM Eknath Shinde has assured that the budget will be people-centric, with a continued focus on public welfare.
• The government insists that financial challenges will be managed without major disruptions.
• Fadnavis has highlighted Maharashtra’s investment potential, citing Rs 15.78 lakh crore in MoUs secured at the World Economic Forum and RBI data ranking Maharashtra as the top state for FDI in the last nine months.

• Manufacturing growth is expected at 4.2 percent, down from 6.8 percent in 2023-24.
• Electricity, gas, and water supply sector growth is projected at 6.5 percent, lower than 8.1 percent in 2023-24.
• The construction sector has shown some improvement despite an overall industrial slowdown.
• Maharashtra’s revenue receipts remain under strain, with 55 percent allocated to committed expenditures, including salaries (32 percent), pensions (12 percent), and interest payments (11 percent).

The budget comes ahead of key local body elections, including those in major cities like Mumbai, Pune, Nagpur, and Thane.