Maharashtra’s outstanding debt is projected to increase by 11.1 per cent in 2025–26, although the overall debt level will remain within the limits set under fiscal responsibility norms, according to the Economic Survey 2025–26 tabled in the state legislature.
The survey, presented on Thursday, stated that the Debt-to-Gross State Domestic Product (GSDP) ratio is estimated at 18.3 per cent in 2025–26, significantly below the 25 per cent ceiling prescribed under the Maharashtra Fiscal Responsibility and Budget Management Rules 2006.
“The state’s total outstanding debt is estimated at about Rs 9.3 lakh crore in 2025–26, which includes accumulated public debt and other liabilities. Domestic borrowings account for the largest share of the total debt stock,” the survey said.
Domestic debt alone is projected to reach Rs 7,39,859 crore, making up 79.4 per cent of the state’s total outstanding debt. The survey noted that the government primarily raises funds through market borrowings and other liabilities to finance capital expenditure and various development programmes.
The interest payment burden is also expected to rise, reaching Rs 64,659 crore in 2025–26 compared to Rs 54,687 crore in 2024–25, reflecting the growing cost of servicing the state’s liabilities.
Interest payments constitute a major component of the state’s revenue expenditure, which is estimated at Rs 6,06,855 crore in 2025–26, the survey said.
The state government is projected to raise Rs 1,35,783 crore through borrowings and other liabilities in 2025–26, largely to finance the fiscal deficit and support capital expenditure.
According to the survey, revenue receipts are estimated at Rs 5,60,964 crore, while revenue expenditure is pegged at Rs 6,06,855 crore, resulting in a revenue deficit of Rs 45,891 crore in 2025–26.
Despite the increase in borrowings and interest payments, the state’s fiscal indicators remain within the limits mandated under the FRBM framework, the report noted, indicating efforts to maintain fiscal discipline while continuing development spending.
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