Maharashtra economy grew alongside debt, state remains financially sound: Fadnavis

Story by PTI | Posted by Vidushi Gaur | Date 11-03-2026

Devendra Fadnavis

Mumbai

Devendra Fadnavis on Wednesday acknowledged financial pressures on Maharashtra’s economy but asserted that the state remains fiscally sound, with a debt-to-GSDP ratio lower than several other states.

Replying to the debate on the state budget in the Maharashtra Legislative Assembly, the chief minister said statistics should not be viewed in isolation as both the debt stock and the size of the economy have expanded significantly over the past decade.

Fadnavis said the state’s debt stock increased from around Rs 3 lakh crore in 2013 to Rs 9.32 lakh crore currently, while the Gross State Domestic Product (GSDP) grew from Rs 16 lakh crore to Rs 51 lakh crore during the same period.

“Maharashtra’s debt-to-GSDP ratio stands at around 18 per cent, which is lower than several other states including Telangana, Karnataka, Andhra Pradesh, Kerala and Tamil Nadu,” said Fadnavis, who also holds the finance portfolio.

He said the state still has borrowing capacity and emphasised that the key issue is ensuring proper utilisation of funds raised through borrowings.

While acknowledging financial pressures, the chief minister rejected allegations that allocations to the social sector had been reduced or diverted.

“Welfare initiatives such as the Laadki Bahin scheme and free electricity for farmers have been implemented while maintaining fiscal discipline,” he said, adding that the fiscal deficit stands at about 2.78 per cent of the GSDP while the revenue deficit is around one per cent.

Fadnavis said the social sector has not been neglected and that the state continues to maintain financial stability despite welfare spending.

Highlighting irrigation development, he said the state’s final irrigation potential is estimated at 81 lakh hectares, of which irrigation capacity has been created for about 57 lakh hectares, with nearly 70 per cent utilisation.

The chief minister also underlined the government’s focus on renewable energy, stating that non-conventional energy generation is expected to reach 52 per cent by 2030 and 65 per cent by 2035.

“A new battery-based technology to store green energy is also being developed, for which a budgetary allocation of Rs 1,650 crore has been made, while private investment of about Rs 3.12 lakh crore is expected in the sector,” he said.

Fadnavis added that the state’s electricity generation capacity of 45,000 MW is projected to increase to 82,000 MW by 2030, with contingency plans in place to ensure uninterrupted power supply even if certain projects face delays.

He further said industrial power consumption grew by around 8 per cent last year, higher than the national average.

Electricity tariffs, he said, have been kept relatively low, with reductions in agricultural surcharges and household tariffs for zero to 100 units expected to decline by 24 per cent over the next five years.