Mumbai: Maharashtra’s total debt stock is projected to cross Rs 11 lakh crore in 2026-27 as the state continues to borrow to fund infrastructure projects and welfare schemes, government officials said on Friday.
According to the state government’s budget documents, Maharashtra’s total debt is estimated at Rs 11,02,654 crore in 2026- 27. This is up from Rs 9,73,989 crore in 2025-26 and Rs 8,40,247 crore in 2024-25. The numbers show a sharp rise over the past decade.
In 2018-19, the state’s debt stood at Rs 4,07,152 crore, which means the total liabilities have more than doubled in about eight years.
According to the Budget documents, rising borrowing is linked to the state government’s spending on large infrastructure projects as well as welfare programmes.
In 2018-19 the debt stock was Rs 4,07,152 crore (16.1 per cent of GSDP), in 2019-20 Rs 4,51,117 crore (16.97 per cent), in 2020-21 Rs 5,19,086 crore (19.88 per cent), in 2021-22 Rs 5,76,868 crore (18.35 per cent), in 2022-23 Rs 6,29,235 crore (19.40 per cent), in 2023-24 Rs 7,18,507 crore (15.72 per cent), in 2024-25 Rs 8,40,247 crore (18.17 per cent), in 2025-26 Rs 9,73,989 crore (19.09 per cent) and in 2026-27 Rs 11,02,654 crore (20.38 per cent).
Over the past few years, the state has invested heavily in metro rail projects, expressways, irrigation works and urban infrastructure, particularly in the Mumbai Metropolitan Region.
At the same time, welfare schemes such as the Ladki Bahin programme and subsidies for farmers have increased the pressure on government finances.
The budget documents show that the state will continue to rely on borrowing to meet its spending needs.
In 2026-27, the state government expects to raise about Rs 1.5 lakh crore through loans and other liabilities.
Most of this borrowing will come from the open market through state government bonds, while the rest will come from Central government loans and other sources.
As debt rises, the cost of servicing it is also increasing.
Interest payments alone are expected to reach Rs 70,055 crore in 2026 27.
The Medium Term Fiscal Policy Strategy Statement presented with the budget says the state government aims to keep the state’s debt within 25 per cent of the Gross State Domestic Product.
While the total debt is rising, the state government says the burden is still manageable when compared with the size of the state economy.
The debt to GSDP ratio is expected to be about 20.38 per cent in 2026-27, which is below the 25 per cent limit set under fiscal responsibility rules.
The fiscal policy document also says the state’s fiscal deficit is expected to stay within the three per cent limit.
It is projected to remain between about 2.7 and 2.9 per cent of GSDP over the next two years.
According to the government sources, much of the borrowing is being used for infrastructure investment that is expected to support economic growth and create jobs.
The rise in Maharashtra’s debt reflects a broader trend across many Indian states.
After the Covid-19 pandemic, several large states such as Punjab, Rajasthan and West Bengal have seen their borrowing increase due to higher welfare spending and infrastructure expansion.
The Reserve Bank of India assessments show that the combined debt of all states in India could remain above 28 to 30 per cent of GDP in the coming years.
Despite the rise in borrowing, Maharashtra’s fiscal indicators are still considered relatively strong because of its large economy and higher tax revenues compared with many other states.
(IANS)
