Key Points
Maharashtra maintains debt-to-GSDP ratio below 20%
State projects economic growth through infrastructure investments
Government committed to welfare schemes and fiscal discipline
He rejected claims that the economy is under stress due to rising revenue and fiscal deficits and growing debt stock.
Speaking in the state Assembly during his reply to a debate on the 2025-26 budget, Pawar emphasized that the government is committed to fulfilling its promises following the MahaYuti alliance's landslide victory. He also called for collective efforts to boost Maharashtra's economic growth.
Pawar highlighted that the estimated revenue deficit of Rs 45,891 crore, fiscal deficit of Rs 1.36 lakh crore, and total debt stock of Rs 9.32 lakh crore are within the permissible limits relative to the state’s projected Gross State Domestic Product (GSDP) of Rs 49.39 lakh crore. The rise in GSDP, he noted, is driven by increased government spending on infrastructure projects such as metro networks, roads, and highways.
Pawar explained that the projected revenue deficit is 0.93 per cent of GSDP -- below the 1 per cent threshold -- while the fiscal deficit remains under 3 per cent and the debt stock below 20 per cent.
He pointed out that Maharashtra, along with Gujarat and Odisha, is one of only three states maintaining a debt-to-GSDP ratio below 20 per cent, compared to approximately 28 per cent in some other states.
“Maharashtra has always used debt prudently for capital expenditure and to attract investments. The debt stock of Rs 9.32 lakh crore should be viewed in the context of the state’s ability to repay and the responsible utilization of those funds,” he said.
He further stated that the state's interest payment ratio of 10-11 per cent remains below NITI Aayog's guideline of 13 per cent of GSDP.
Dismissing opposition allegations that the government plans to halt welfare and development schemes introduced before the assembly elections, Pawar assured that flagship programs like the 'Ladki Bahin Yojana' will continue without funding constraints. However, he mentioned that some pandemic-era schemes would be reviewed and evaluated.
While he did not specify which schemes may be discontinued, the opposition has accused the government of shutting down initiatives like the 'Shivbhojan Thali' (subsidized meals) and 'Anandacha Shidha' (distribution of essential commodities to BPL families).
To reduce the revenue deficit, Pawar said the government is focusing on increasing revenue by cutting unproductive expenses and curbing tax evasion. He projected additional revenue of Rs 5,000 crore to Rs 19,000 crore through higher collections from stamp duty, registration fees, state excise duty, and state GST by the end of 2025-26.
“As Finance and Excise Minister, my priority is to further boost state GST and excise revenue to bridge the revenue gap,” he asserted.
Pawar reaffirmed the government's commitment to achieving 'Viksit Maharashtra, Viksit Bharat' by 2047. He stressed that large-scale infrastructure investments will spur job creation, increase revenue, and drive long-term economic growth.
He also expressed gratitude to the Narendra Modi-led NDA government for the 'Special Assistance to States for Capital Expenditure' scheme, under which Maharashtra will receive a 50-year interest-free loan. He confirmed that the state is expected to receive Rs 12,000 crore under this scheme by March 31, 2025.
