Maha govt tables Rs 97,706-cr supplementary demands, Rs 20,552 cr earmarked for farm loan waiver
Mumbai, June 22
Amid mounting pressure on state finances due to rising public debt and a widening fiscal deficit, Maharashtra Chief Minister Devendra Fadnavis on Monday presented supplementary demands of Rs 97,706.40 crore for the remainder of the financial year 2026-27.
A major component of the supplementary demands is the allocation of Rs 20,552 crore towards government's farm loan waiver programme. The overall scheme, estimated to cost Rs 36,585 crore, is expected to benefit nearly 56 lakh farmers across the state. Defending the decision, Fadnavis, who also holds the finance and planning portfolios, said the loan waiver had been announced purely to provide relief to distressed farmers and was not linked to any electoral considerations.
The state government had earlier presented a budget of Rs 7.60 lakh crore for 2026-27 and subsequently sought supplementary demands of Rs 11,552 crore during the Budget Session held earlier this year. Maharashtra has projected a fiscal deficit of Rs 1.50 lakh crore and a revenue deficit of Rs 40,000 crore, while its public debt is expected to touch Rs 11 lakh crore by the end of the current fiscal.
Infrastructure and transport projects account for a substantial share of the latest allocations. The government has proposed a loan of Rs 3,372 crore to the Mumbai Metropolitan Region Development Authority (MMRDA) for metro projects. An additional Rs 4,550 crore has been earmarked for the Thane-Borivali twin tunnel project and the Orange Gate underground road corridor.
A provision of Rs 800 crore has been set aside for distribution to local self-government bodies. Under the Central Government's special assistance scheme for states' capital investment, an allocation of Rs 9,934 crore has been made for various development works through interest-free loans. A fund of Rs 350 crore has been provisioned as the state government's share (equity) in Mumbai Metro.
The government has earmarked Rs 9,934 crore towards Interest-free loan for development works in various sectors under Special Assistance Scheme for Capital Investment from Central Government to the States. It has been decided to provide fund of Rs 800 crore under Urban Infrastructure Development Fund (UIDF) to disburse loans received from National Housing Bank to urban local bodies. It has been decided to provide additional fund of Rs 1,000 crore as share capital contribution to Maharashtra State Infrastructure Development Corporation.
It has been decided to provide additional fund of Rs 181 crore for carrying out Civil, furniture and electrical works on various floors of the Air India building. The government has earmarked Rs 3,000 crore for payment of interest on loan taken by Maharashtra State Electricity Distribution Company.
A fund of Rs 4,000 crore has been earmarked for payment of electricity bills of state government offices through composite billing system. The government has earmarked Rs 5,000 crore for repayment of loan taken by Maharashtra State Electricity Distribution Company and Rs 1,750 crore to cover deficit under the Minimum Support Price Scheme.
Further, the government has earmarked Rs 1,734 crore for Honorarium of Anganwadi Workers, to meet the e expenses on general items and salary under Anganwadi service scheme. It has been decided to provide fund of Rs 100 crore for the construction of new administrative buildings under the expansion of Vidhan Bhavan, Nagpur.
Also, Rs 28 crore has been earmarked for the expenditure on Project of Digitalisation of Maharashtra Legislature Secretariat. The government has allocated Rs 21 crore to provide eco-friendly vehicle for promoting self-dependency in persons with disabilities (Mobile Shop on Vehicle).
— IANS
Reader Comments
Rs 36,585 crore for loan waiver? That's a lot of money when our fiscal deficit is already Rs 1.50 lakh crore and public debt is touching Rs 11 lakh crore. Loan waivers are a short-term solution. Why not invest in irrigation, crop insurance, and better MSP? The farmer's problem is systemic, not just debt.
I'm happy to see infrastructure getting attention - Thane-Borivali twin tunnel and Orange Gate corridor are desperate needs for Mumbai's traffic. But Rs 3,372 crore loan to MMRDA for metros? That's justified. Our city needs better public transport before we choke completely. 🚇
Dear CM, loan waivers are not a solution - they create a moral hazard. Farmers who didn't take loans will feel cheated. And where will this Rs 97,706 crore come from? More borrowing? Our children will pay for this. Please focus on income support like PM-KISAN rather than loan waivers. 🙏
Rs 4,000 crore for electricity bills of government offices? That's shocking! Our babus need to conserve power. And Rs 1,000 crore for MSIDC? I'm all for development but we need tighter audits. Also, Rs 181 crore for Air India building renovation? Seriously? That money could build schools. 😡
Good to see Rs 1,734 crore for Anganwadi workers and honorable mention for Vidhan Bhavan expansion in Nagpur. But Rs 28 crore for digitization of legislature? In 2024? We should have done this years ago! And
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.