Nagpur, Dec 14 (PTI) Chief Minister Devendra Fadnavis on Sunday acknowledged the state treasury is under financial pressure, but asserted Maharashtra continues to meet all key parameters of a strong and
stable economy.
Responding to several issues raised by legislators on the last day of the Winter session of the assembly, Fadnavis rejected allegations that the state's finances are weakening.
"We do not have an overflowing treasury, and I will not claim that we do. However, I can state with certainty that among the country's large states, Maharashtra even today qualifies on all economic indicators of a robust economy," he told the Lower House while replying to the debate on the final-week resolution.
Fadnavis expressed confidence that Maharashtra would become India's first USD one trillion state economy between 2029 and 2030, attributing this to long-term planning and fiscal discipline.
The government has prepared a vision document outlining a roadmap for a developed Maharashtra by 2047, with milestones set for 2030, 2035 and 2047, he pointed out.
Attributing fiscal figures to official estimates, Fadnavis said states are permitted by the Reserve Bank of India and the FRBM (Fiscal Responsibility and Budget Management Act) framework to borrow up to 25 per cent of their gross state domestic product.
"Maharashtra's borrowing, based on the 2025-26 budget estimates and loans raised so far, stands at 18.87 per cent of GSDP, well below the permissible limit. Only three states, Gujarat, Maharashtra and Odisha, currently have debt levels below 20 per cent," he said in the assembly.
Fadnavis further said the fiscal deficit must be kept within 3 per cent, and Maharashtra has achieved this despite expenditure on welfare schemes such as the Mukhyamantri Majhi Ladki Bahin Yojana and payments to farmers.
He stated that the state's fiscal deficit for the current year has been restricted to 2.76 per cent, while interest payments account for 11.53 per cent of revenue receipts, marginally higher than last year's 11.35 per cent.
He also said Maharashtra has undertaken capital expenditure exceeding the benchmarks set by the Centre.
Dismissing political speculation over Maharashtra's unity, Fadnavis asserted there should be no doubt about the state's strength or integrity.
Mumbai was, is and will always remain part of Maharashtra, the CM said while attributing debates on the issue to election-related rhetoric.
Speaking on agriculture, Fadnavis said Rs 15,007 crore has been directly transferred to farmers' bank accounts, with crop compensation paid to 92 lakh farmers.
He informed the House that Rs 80 crore has been allocated for the repair of 27,000 irrigation wells damaged due to excessive rainfall.
Detailing the relief package, Fadnavis said his government had announced a Rs 32,000 crore package, including Rs 10,000 crore for infrastructure, Rs 2,000 crore through MGNREGA and the remainder as direct assistance.
Additional support of Rs 10,000 per hectare was extended for the Rabi season even after payments under the prescribed limits, and compensation for livestock losses has been fully disbursed, the CM informed the assembly.
On cotton procurement, Fadnavis said the state intervened after concerns arose over productivity-based purchases by the Cotton Corporation of India, adding that the government revised the benchmark from 1,277 kg per hectare to 2,368 kg per hectare, ensuring no farmer's cotton would be rejected.
Addressing farm loan waivers, Fadnavis admitted that unseasonal rain and other pressures have strained the budget, but reiterated the government's commitment to farmers.
"The benefit of loan waivers must go to farmers, not banks. A committee is examining phased solutions. The government will announce the framework for the loan waiver scheme by July 1," he said. PTI ND BNM
