Synopsis
The Maharashtra government anticipates a decrease in capital expenditure on development projects to Rs 93,165.52 crore in 2025-26, accounting for 11% of GSDP. This is lower than the revised estimate of Rs 1,09,031.48 crore for 2024-25, indicating a shift in funding priorities amidst ongoing development initiatives.Key Takeaways
- Maharashtra's capital expenditure forecast for 2025-26 is Rs 93,165.52 crore.
- Capital expenditure as a percentage of GSDP is expected to decrease to 11%.
- The government is prioritizing development works despite budget cuts.
- Privatization in infrastructure may be considered due to funding shortages.
- Pending contractor payments total Rs 89,000 crore.
Mumbai, March 10 (NationPress) The Maharashtra government's capital expenditure on development initiatives, particularly for asset creation, is projected to decline to 11 percent of the gross state domestic product (GSDP) at Rs 93,165.52 crore in 2025-26, compared to 13 percent at Rs 1,09,031.48 crore as per the revised estimates for 2024-25.
This decrease in capital expenditure comes despite the government proposing numerous development schemes across various sectors. However, according to the budget document presented alongside the annual budget for 2025-26, there is a 2 percent drop in capital expenditure allocated for development projects.
The government's decision is crucial, especially as it aims to prioritize development works by enhancing capital expenditure. The central government has significantly increased its capital expenditure.
Prime Minister Narendra Modi previously indicated that states should also aim to boost their asset base by increasing capital expenditure. Sources from the finance department acknowledged that the reduction in capital expenditure could impact ongoing development initiatives.
The government may need to consider privatization in the infrastructure sector due to insufficient funds for capital expenditure. Additionally, various development projects are being undertaken through public-private partnerships.
In the fiscal year 2024-25, despite an initial allocation of Rs 92,779 crore for capital expenditure, the actual expenditure reached Rs 1,09,031.48 crore according to the revised budget. The government has prioritized welfare and development initiatives ahead of the assembly elections held last year,” sources stated.
Despite the launch of several development projects, the government has yet to settle contractor payments totaling Rs 89,000 crore. Nevertheless, sources indicated that the government has initiated a special plan to clear pending dues to contractors through phased fund allocations.
Meanwhile, the deputy chief minister has projected a revenue expenditure of Rs 6,06,854.68 crore for the budget estimate of 2025-26, compared to the revised estimate of Rs 5,62,998.52 crore for 2024-25.
