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  • Maharashtra Budget Analysis 2025-26

Maharashtra Budget Analysis 2025-26

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The Finance Minister of Maharashtra, Mr. Ajit Pawar, presented the Budget for the state for the financial year 2025-26 on March 10, 2025.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Maharashtra for 2025-26 (at current prices) is projected to be Rs 49,39,355 crore, amounting to growth of 9% over 2024-25.

  • Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 7,00,020 crore, an increase of 4% from the revised estimates of 2024-25.  In addition, debt of Rs 57,556 crore will be repaid by the state.

  • Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 5,63,786 crore, an increase of 5% as compared to the revised estimate of 2024-25.  

  • Revenue deficit in 2025-26 is estimated to be 0.9% of GSDP (Rs 45,891 crore), as compared to a revenue deficit of 0.6% of GSDP (Rs 26,535 crore) at the revised estimate stage in 2024-25.  

  • Fiscal deficit for 2025-26 is targeted at 2.8% of GSDP (Rs 1,36,235 crore).   In 2024-25, as per the revised estimates, fiscal deficit is expected to be 2.9% of GSDP, higher than the budgeted 2.6% of GSDP.

Policy Highlights

  • New Industrial policy:  A new industrial policy for the state will be announced in 2025.  It will aim to attract investments worth Rs 40 lakh crore and create 50 lakh jobs.  Separate policies will be announced for sectors such as space, defence, and electronics. 

  • Growth hub:   International level business centres will be developed at seven locations across the Mumbai Metropolitan Region.  These will help expand the city’s economy to USD 1.5 trillion by 2047.  

  • Road infrastructure:  A long-term road development plan will be prepared to connect tourist centres, pilgrimage sites, and national parks by 2047.  Under the Mukhya Mantri Gram Sadak Yojana, 3,582 villages will be connected to major roads and highways at a cost of Rs 30,100 crore. 

  • Motor vehicle tax:  Currently, motor vehicle tax is levied at 7-9% on non-transport four-wheelers.   This will be increased by 1%.   Electric vehicles priced above Rs 30 lakh will be taxed at 6%.  Construction vehicles will be taxed at 7% of their price.  The maximum limit on motor vehicle tax will be raised from Rs 20 lakh to 30 lakh.  

  • Affordable power: Over the next five years, electricity purchase costs will be reduced by Rs 1.13 lakh crore due to planning and procurement of low cost green energy.  This is expected to reduce Maharashtra’s industrial electricity rates below that of other states. 

Maharashtra’s Economy

  • GSDP:  In 2023-24, Maharashtra’s GSDP (at constant prices) is estimated to grow by 8% over the previous year.  In comparison, India’s GDP is estimated to grow by 9.2% in 2023-24.

  • Sectors:  In 2023-24, agriculture, manufacturing, and services sectors are estimated to contribute 13%, 23%, and 64% of Maharashtra’s economy, respectively (at current prices).

  • Per capita GSDP:  In 2023-24, Maharashtra’s per capita GSDP (at current prices) is estimated to be Rs 3,19,474, an increase of 11% over 2022-23.  In 2023-24, India’s per capita GDP is estimated to increase by 11% over 2022-23 to Rs 2,15,935.

Figure 1: Growth in Maharashtra’s GSDP at constant prices (2011-12) 
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Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
 Sources: Economic Survey of Maharashtra 2024-25; PRS.

 Budget Estimates for 2025-26

  • Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 7,00,020 crore.  This is an increase of 4% from the revised estimate of 2024-25.  This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 5,63,786 crore and net borrowings of Rs 97,847 crore.  Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 5% over the revised estimate of 2024-25.

  • The state estimates a revenue deficit of 0.9% of GSDP (Rs 45,891 crore) in 2025-26, as compared to a revenue deficit of 0.6% of GSDP at the revised estimate stage of 2024-25.  

  • Fiscal deficit for 2025-26 is targeted at 2.8% of GSDP (Rs 1,36,235 crore), lower than the revised estimates for 2024-25 (2.9% of GSDP).

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