Maharashtra Tables Rs 97,706-Crore Supplementary Demands, Prioritizing Massive Farm Loan Waiver
Maharashtra has tabled supplementary demands worth Rs 97,706.40 crore, highlighted by a massive allocation for the Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana farm loan waiver. The initiative addresses significant fiscal challenges while aiming to support farmers and critical state infrastructure and utility sectors.
Highlights
- •Maharashtra tabled Rs 97,706.40 crore in supplementary demands for the Monsoon Session.
- •A record Rs 20,552 crore is allocated for the Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana, 2026.
- •The actual additional fiscal burden on the state exchequer is estimated at Rs 74,817 crore.
- •Significant funds are directed toward MSEDCL debt repayment and central infrastructure investment schemes.
Facing intensifying scrutiny over the state's escalating debt, Maharashtra has officially introduced supplementary demands totaling Rs 97,706.40 crore. Chief Minister and Finance Minister Devendra Fadnavis presented these figures before both houses of the State Legislature as the Monsoon Session commenced. The financial proposal aims to address a broad spectrum of requirements, specifically targeting farmers, female workers, students from backward classes, and various welfare beneficiaries through a major fiscal package.
A central pillar of these supplementary demands is the allocation of Rs 20,552 crore dedicated to the newly launched Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana, 2026. This strategic initiative serves as a response to persistent demands from opposition factions, who have been advocating for a comprehensive farm loan waiver with relaxed eligibility criteria. Previously, Devendra Fadnavis had indicated that the total expenditure associated with the farm loan waiver program would reach Rs 36,585 crore.
Fiscal Overview and Budgetary Implications
While the state government has tabled supplementary demands of Rs 97,706.40 crore, officials have clarified that the net additional impact on the state treasury is projected at Rs 74,817 crore. The state's broader economic picture remains a subject of intense discussion. In the 2026-27 annual budget, the finance department projected a revenue deficit of Rs 40,552 crore, alongside a fiscal deficit estimated at Rs 1,50,491 crore.
The state's overall financial liabilities are expected to climb to Rs 11,02,654 crore for the 2026-27 fiscal period, marking a significant rise from the Rs 9,73,989 crore reported in 2025-26. These figures represent the most substantial supplementary demands filed since the current Mahayuti government, led by Devendra Fadnavis, first took office.
Strategic Allocations and Infrastructure Investments
Beyond the agricultural sector, the supplementary budget outlines significant capital deployment across various utility and development departments. Notably, Rs 9,934 crore has been designated for interest-free loans to support development initiatives aligned with the central government’s Special Assistance Scheme for Capital Investment. Additionally, the government has earmarked Rs 3,000 crore to cover interest payments on debt held by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). A further Rs 5,000 crore is allocated for the general repayment of MSEDCL loans, while Rs 4,000 crore is reserved for settling the electricity bills of government departments through the Composite Billing System. Finally, an additional provision of Rs 1,750.62 crore has been integrated to address shortfalls under the Minimum Support Price (MSP) scheme, ensuring support for agricultural market stability.
