Maharashtra Chief Minister Devendra Fadnavis on Monday, 22 June tabled supplementary demands worth ₹97,706.40 crore for the remainder of financial year 2026-27, even as the state grapples with a projected fiscal deficit of ₹1.50 lakh crore and public debt expected to breach ₹11 lakh crore by year-end. The demands represent the second supplementary budget exercise of the year, following an earlier round of ₹11,552 crore during the Budget Session.

Farm Loan Waiver: The Centrepiece

The single largest allocation — ₹20,552 crore — is earmarked for the state's farm loan waiver programme, which is estimated to cost ₹36,585 crore in total and is expected to benefit nearly 56 lakh farmers across Maharashtra. Fadnavis, who also holds the Finance and Planning portfolios, defended the move, stating that the waiver was announced solely to provide relief to distressed farmers and was not linked to any electoral considerations. Critics, however, have questioned the fiscal prudence of a large-scale waiver at a time when the state's revenue deficit stands at ₹40,000 crore.

Infrastructure and Urban Projects

Infrastructure spending features prominently in the supplementary demands. The government has proposed a loan of ₹3,372 crore to the Mumbai Metropolitan Region Development Authority (MMRDA) for metro projects, along with ₹4,550 crore for the Thane-Borivali twin tunnel project and the Orange Gate underground road corridor. An additional ₹350 crore has been provisioned as the state's equity contribution to Mumbai Metro, and ₹1,000 crore has been allocated as share capital to the Maharashtra State Infrastructure Development Corporation.

Power Sector and Local Bodies

The power sector draws a combined outlay of ₹8,000 crore — ₹3,000 crore for interest payments on loans taken by the Maharashtra State Electricity Distribution Company and ₹5,000 crore for repayment of those loans. A further ₹4,000 crore has been set aside to clear electricity bills of state government offices through the composite billing system. Urban local bodies are to receive ₹800 crore under the Urban Infrastructure Development Fund (UIDF), disbursed as loans received from the National Housing Bank.

Other Key Allocations

Under the Centre's Special Assistance Scheme for Capital Investment, Maharashtra has secured ₹9,934 crore in interest-free loans for development works across sectors. The government has also earmarked ₹1,750 crore to cover deficits under the Minimum Support Price (MSP) Scheme, ₹1,734 crore for honoraria and operational expenses of Anganwadi workers, and ₹181 crore for civil, furniture, and electrical works at the Air India building. Smaller but notable provisions include ₹100 crore for new administrative buildings under the expansion of Vidhan Bhavan, Nagpur, ₹28 crore for digitalisation of the Maharashtra Legislature Secretariat, and ₹21 crore for eco-friendly vehicles to promote self-reliance among persons with disabilities.

Fiscal Pressure in Context

Maharashtra had presented a full budget of ₹7.60 lakh crore for 2026-27, making this supplementary round — at nearly ₹1 lakh crore — a significant add-on. The state's fiscal trajectory has drawn attention from economists and opposition lawmakers alike, with public debt on course to hit ₹11 lakh crore this fiscal. The farm loan waiver, in particular, is expected to be a recurring pressure point as the government balances welfare commitments against debt servicing obligations. How the state manages revenue mobilisation in the second half of the year will be closely watched.