Maharashtra – Maharashtra’s Deputy Chief Minister and Finance Minister, Ajit Pawar, recently presented the state’s budget for the fiscal year 2025-26. The budget, valued at ₹7 lakh crore, positions Maharashtra as one of the leading states in terms of budget size, second only to Uttar Pradesh.
This comprehensive budget outlines ambitious plans for economic growth, infrastructure development, job creation, and social welfare.
Economic Growth Projections as per Maharashtra Budget 2025-26
Maharashtra’s economy is projected to grow at 7.3% in 2024-25, surpassing the national growth rate of 6.5%.
This optimistic forecast underscores the state’s resilience and robust economic policies. The government aims to attract ₹20 lakh crore in investments through the New Industrial Policy, which is expected to generate 50 lakh jobs over the next five years.
Major Infrastructure Initiatives under the newly launched Maharashtra Budget 2025-26
The budget emphasizes significant infrastructure projects to bolster connectivity and economic activity.
Third Mumbai Airport
A third airport for Mumbai is proposed near Vadhvan Port in Palghar. This strategic location aligns with the Mumbai-Ahmedabad bullet train station, enhancing regional connectivity.
Metro Connectivity
Plans are underway to link Chhatrapati Shivaji Maharaj International Airport with Navi Mumbai International Airport via a metro line. This initiative aims to streamline travel between the two airports, improving passenger convenience.
Road Development
The state plans to develop 1,500 km of new roads, enhancing transportation networks and supporting economic growth.
Job Creation and Industrial Policy
The New Industrial Policy aims to attract ₹20 lakh crore in investments, with a goal of creating 50 lakh jobs over the next five years. This initiative reflects the government’s commitment to boosting employment and fostering industrial growth.
Taxation Measures
The budget proposes a 1% increase in motor vehicle tax for CNG and LPG vehicles. This measure aims to generate additional revenue for the state’s developmental projects. Notably, there is no hike in the stipend for the Ladki Bahin Scheme, despite allocating ₹36,000 crore for the program.
Foreign Direct Investment (FDI) Inflows
Maharashtra has received record FDI inflows, totaling ₹1,39,434 crore in the first nine months of 2024-25. This substantial investment reinforces the state’s position as a top destination for global investors.
Mumbai’s Economic Vision
The budget outlines an ambitious vision for Mumbai’s economy, projecting growth from $140 billion to $300 billion by 2047. Additionally, the Mumbai Metropolitan Region aims to achieve a $1.5 trillion economy, reflecting the state’s long-term developmental goals.
Challenges and Observations
Despite the positive outlook, the state faces challenges. The debt stock is expected to rise to 17.3% of the Gross State Domestic Product (GSDP), which remains within fiscal norms but warrants cautious monitoring. Increased revenue expenditure coupled with a marginal rise in capital expenditure indicates potential constraints on financial health. The budget also comes amid significant political changes in the state over the past five years, adding layers of complexity to its implementation.
Social Welfare Initiatives under Maharashtra Budget 2025-26
The budget continues to support social welfare schemes. The Ladki Bahin Scheme, for instance, has seen ₹17,505.90 crore transferred to 2.38 crore women beneficiaries as of December 2024.
This initiative underscores the government’s commitment to empowering women and promoting social equity.
Final Analysis of the Maharashtra Budget 2025-26
Maharashtra’s 2025-26 budget reflects a balanced approach, aiming for robust economic growth while addressing infrastructural and social needs. The emphasis on infrastructure development, job creation, and social welfare demonstrates the government’s commitment to holistic development. However, careful fiscal management will be crucial to navigate the challenges posed by rising debt and expenditure. The successful implementation of these initiatives will play a pivotal role in achieving the state’s ambitious economic vision for the future.
