Maharashtra's Economy Remains Strong, Ajit Pawar Urges Realistic Outlook

Mumbai, March 17 (NationPress) Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar urged opposition members on Monday to refrain from depicting a gloomy scenario regarding the state's economy, as it may discourage potential investments. He dismissed assertions that the economy is under strain due to increasing revenue and fiscal deficits along with a rising debt burden.

During his address in the state Assembly, responding to a debate on the 2025-26 budget, Pawar highlighted that the government remains dedicated to delivering on its promises after the MahaYuti alliance's significant victory. He called for united efforts to enhance Maharashtra's economic development.

Pawar noted that the projected revenue deficit of Rs 45,891 crore, a fiscal deficit of Rs 1.36 lakh crore, and total debt of Rs 9.32 lakh crore are all within acceptable limits in relation to the state’s anticipated Gross State Domestic Product (GSDP) of Rs 49.39 lakh crore. He attributed the increase in GSDP to heightened government spending on infrastructure initiatives such as metro systems, roadways, and highways.

He clarified that the anticipated revenue deficit is 0.93 percent of GSDP, which is below the 1 percent threshold; the fiscal deficit remains under 3 percent and the debt stock is under 20 percent.

Pawar pointed out that Maharashtra, alongside Gujarat and Odisha, is one of just three states maintaining a debt-to-GSDP ratio below 20 percent, in contrast to roughly 28 percent in several other states.

“Maharashtra has consistently utilized debt wisely for capital projects and attracting investments. The debt stock of Rs 9.32 lakh crore should be understood in the context of the state’s repayment capacity and the judicious use of those funds,” he stated.

He added that the state's interest payment ratio of 10-11 percent remains below NITI Aayog’s recommendation of 13 percent of GSDP.

Refuting opposition claims that the government intends to terminate welfare and development programs initiated before the assembly elections, Pawar assured that key initiatives like the 'Ladki Bahin Yojana' will proceed without financial restrictions. However, he noted that some pandemic-era programs would be assessed and reviewed.

While he did not specify which initiatives might be cut, the opposition has accused the government of discontinuing programs like the 'Shivbhojan Thali' (subsidized meals) and 'Anandacha Shidha' (distribution of essential goods to BPL families).

To tackle the revenue deficit, Pawar mentioned that the government is concentrating on boosting revenue by reducing unproductive spending and curbing tax evasion. He projected additional revenue of Rs 5,000 crore to Rs 19,000 crore through enhanced collections from stamp duty, registration fees, state excise duty, and state GST by the conclusion of 2025-26.

“As Finance and Excise Minister, my focus is on further increasing state GST and excise revenue to close the revenue gap,” he affirmed.

Pawar reiterated the government's pledge to achieve 'Viksit Maharashtra, Viksit Bharat' by 2047. He emphasized that significant infrastructure investments will foster job creation, enhance revenue, and promote sustained economic growth.

He also expressed appreciation to the Narendra Modi-led NDA government for the 'Special Assistance to States for Capital Expenditure' initiative, under which Maharashtra will receive a 50-year interest-free loan. He confirmed that the state anticipates receiving Rs 12,000 crore under this program by March 31, 2025.