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Maharashtra's Salary & Pension Bill to Hit Record ₹3.12 Lakh Crore in 2025-26

Maharashtra's expenditure on salaries, pensions, and interest payments is projected to reach a historic high of ₹3,12,556 crore for the fiscal year 2025-26. This massive outgo constitutes more than half of the state's total estimated revenue expenditure of ₹6,06,855 crore. While committed expenditures rise, the state maintains its top position in attracting Foreign Direct Investment, holding a 31% national share. The Economic Survey also highlights strong performance in software exports and a significant number of registered MSMEs providing extensive employment.

Key Points: Maharashtra's Record ₹3.12L Cr Outgo on Salaries, Pension

  • Record ₹3.12L Cr on salaries/pension/interest
  • Salary spend up to ₹1.72L Cr (28.5% of expenditure)
  • Pension outgo rises to ₹75,137 Cr
  • State leads India with 31% share in FDI inflows
  • Software exports hit ₹1.74L Cr till Jan 2026
2 min read

Maha govt's outgo on salaries, pension and interest payment valued at Rs 3,12,556 crore in 2025-26

Maharashtra's spending on salaries, pension & interest will exceed ₹3.12 lakh crore in 2025-26, accounting for over 50% of its revenue expenditure.

"more than 50 per cent of the revenue expenditure - Economic Survey 2025-26"

Mumbai, March 6

Maharashtra's outgo towards salaries, pension and interest payment during 2025-26 will be a record Rs 3,12,556 crore, which will be more than 50 per cent of the revenue expenditure of Rs 6,06,855 crore.

The revenue receipts are estimated at Rs 5,60,964 crore, officials said on Thursday.

According to the Economic Survey for 2025-26, the Maharashtra government's spending on salaries is Rs 1,72,760 crore (28.5 per cent of total revenue expenditure) against Rs 1,46, 037 crore (25.9 percent) in 2024-25.

The state government will incur an expenditure of Rs 75,137 crore (12.4 per cent) on paying pension against Rs 60,038 crore (10.7 per cent) in 2024-25.

On interest payment, the state government's outgo will be Rs 64,659 crore (10.7 per cent) against Rs 54,687 crore (9.7 per cent) in 2024-25.

Moreover, the state government will have to shell out Rs 58,528 crore (9.6 per cent) against Rs 60,623 crore (10.8 per cent) in 2024-25.

The state government will spend Rs 1,70,546 crore (28.1 per cent) on grants in aid (non salary) against Rs 1,78,094 crore (31.6 per cent) in 2024-25.

The state government spending on other items will be Rs 65,225 crore (10.7 per cent) against Rs 63,520 crore (11.3 per cent) in 2024-25.

The Economic Survey has said the revenue expenditure will be estimated at Rs 6,06,855 crore against Rs 5,62,999 crore in 2024-25.

Meanwhile, the Economic Survey added that from October 2019 to March 2025, the state has remained at the top position in FDI inflows in India with 31 per cent share.

During 2024-25, exports from the state contributed 15 per cent in the total exports from India.

During current year, up to January 2026 the software exports in the state was Rs 1,74,798 crore.

Since inception of IT and ITeS Policy 2023, up to December 2025, 37 public IT parks with an investment of about Rs 18,595 crore and about 2.7 lakh employment.

As on February 10, 2026, the state has the highest share (17 per cent) in the startups at all-India level.

In the state, total number of MSMEs registered on Udyam registration portal up to December 2025 were 63.85 lakh (62.11 lakh micro, 1.55 lakh small and 0.18 lakh medium) with 252.84 lakh total employment therein.

The state government has also declared Maharashtra Industries, Investment and Services Policy 2025 with a vision that centres on establishing Maharashtra as a premier global business destination, aiming to attract substantial investment, foster innovation and accelerate technology adoption.

- IANS

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Reader Comments

R
Rohit P
The numbers are mind-boggling, but the article also shows Maharashtra is an economic powerhouse. Top in FDI and startups! This high expenditure might be a result of having a large, skilled workforce that needs to be paid well. The investment in IT parks will pay off in the long run. 👍
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Sarah B
As someone who works in the tech sector here, I see the positive side. The state is creating lakhs of jobs through IT parks and MSMEs. The pension and salary outgo is high, but it also means money is circulating in the economy. People spend their salaries locally.
A
Aman W
With respect, this seems unsustainable. More than half the revenue is going to these committed expenditures. What about farmers, infrastructure in rural areas, and healthcare? The government must streamline its workforce and look at pension reforms. Otherwise, future generations will bear the debt burden.
K
Kavya N
It's a double-edged sword. On one hand, it's responsible to pay salaries and pensions on time—many states struggle with this. On the other, such a large portion leaves little for new initiatives. Hope the new Industries Policy 2025 brings in more revenue to offset this. 🤞
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Vikram M
The interest payment of nearly 65,000 crore is very concerning. That's money going to banks, not to the people of Maharashtra. We need fiscal discipline. At the same time, the data on MSMEs and software exports is impressive. The state's economy is strong, but needs careful management.

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