Mumbai, March 6 (NationPress) The overall debt stock of Maharashtra is anticipated to exceed Rs 11 lakh crore by the fiscal year 2026-27, as the state persists in its borrowing efforts to finance extensive infrastructure initiatives and welfare programs, according to government officials.

As outlined in the state's budget documents, the estimated total debt is projected at Rs 11,02,654 crore for 2026-27, a significant increase from Rs 9,73,989 crore in 2025-26 and Rs 8,40,247 crore in 2024-25. This trend indicates a substantial escalation over the past decade.

In the fiscal year 2018-19, the debt was recorded at Rs 4,07,152 crore, indicating that the total liabilities have more than doubled in roughly eight years.

The budget documents attribute the climbing debt levels to the state's ongoing investments in large-scale infrastructure projects and various welfare initiatives.

Historically, the debt stock figures are as follows: Rs 4,07,152 crore (16.1% of GSDP) in 2018-19, Rs 4,51,117 crore (16.97%) in 2019-20, Rs 5,19,086 crore (19.88%) in 2020-21, Rs 5,76,868 crore (18.35%) in 2021-22, Rs 6,29,235 crore (19.40%) in 2022-23, Rs 7,18,507 crore (15.72%) in 2023-24, Rs 8,40,247 crore (18.17%) in 2024-25, Rs 9,73,989 crore (19.09%) in 2025-26, and projected Rs 11,02,654 crore (20.38%) in 2026-27.

In recent years, Maharashtra has significantly invested in projects such as metro rail systems, expressways, irrigation efforts, and urban infrastructure, particularly within the Mumbai Metropolitan Region.

Simultaneously, welfare programs including the Ladki Bahin initiative and farmer subsidies have intensified the fiscal pressures on the state government.

The budget documents indicate that borrowing will remain a vital component to fulfill the state's spending requirements.

For the fiscal year 2026-27, the state government plans to raise approximately Rs 1.5 lakh crore through loans and various liabilities.

The majority of this borrowing is expected to be sourced from the open market via state government bonds, with additional funds coming from central government loans and other avenues.

As the debt continues to rise, the costs associated with servicing it are also increasing.

Interest payments are projected to reach Rs 70,055 crore in 2026-27.

The Medium Term Fiscal Policy Strategy Statement, presented alongside the budget, emphasizes the goal of maintaining the state's debt within 25% of GSDP.

Although the overall debt is on an upward trajectory, the state government claims that the burden remains manageable relative to the size of the state economy.

The debt-to-GSDP ratio is anticipated to be around 20.38% for the fiscal year 2026-27, staying below the 25% threshold established by fiscal responsibility regulations.

Moreover, the fiscal policy document indicates that the state's fiscal deficit is expected to remain within the 3% limit.

The anticipated fiscal deficit is expected to range from about 2.7% to 2.9% of GSDP over the next two years.

Government sources reveal that a substantial portion of the borrowing is directed toward infrastructure investments that are aimed at fostering economic growth and job creation.

The increase in Maharashtra's debt mirrors a broader pattern observed across various Indian states.

In the aftermath of the Covid-19 pandemic, multiple large states, including Punjab, Rajasthan, and West Bengal, have experienced heightened borrowing levels due to escalated welfare spending and infrastructure development.

According to assessments from the Reserve Bank of India, the cumulative debt of all Indian states is expected to remain above 28% to 30% of GDP in the forthcoming years.

Notwithstanding the rise in borrowing, Maharashtra's fiscal indicators are still regarded as relatively robust owing to its expansive economy and higher tax revenues compared to many other states.