Fadnavis presents 1st budget, announces Rs 2 lakh farm loan waiver, river linking, 4th Mumbai plans

Mumbai, Mar 6 (PTI) The Maharashtra government on Friday announced a farm loan waiver of up to Rs 2 lakh in the 2026-27 budget, which also focuses on river-linking projects, women empowerment, youth development, health, start-ups and strengthening social welfare schemes.

Chief Minister Devendra Fadnavis, who holds the finance portfolio, presented a Rs 7,69,467 crore budget in the assembly, and said Ladki Bahin Yojana, launched ahead of assembly polls in 2024, will continue with adequate allocation for the scheme targeted at poorer women, who get Rs 1,500 a month.

Fadnavis, who said Maharashtra will be a USD 5 trillion economy by 2047, became the first chief minister of the state to present a budget.

The highlight of the budget was the announcement of a loan waiver scheme for eligible farmers, wherein crop credits of up to Rs 2 lakh pending till September 30, 2025, will be written off.

The Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna also includes incentives of up to Rs 50,000 for farmers who have regularly repaid their loans.

Presenting his first budget, Fadnavis said revenue receipt in the next fiscal is estimated at Rs 6,16,099 crore and revenue expenditure at Rs 6,56,651 crore.

Thus, revenue deficit is projected at Rs 40,552 crore in 2026-27, he stated.

Fiscal deficit is estimated at Rs 1,50,491 crore, the CM maintained, adding the government has been successful in keeping the fiscal deficit (shortfall between total income and expenditure) below 3 per cent of the GSDP (Gross State Domestic Product).

He said the state's revenue deficit has consistently remained below 1 per cent of the GSDP.

Fadnavis fondly recalled former state finance minister Ajit Pawar, who died in an air crash in January. A befitting memorial will be set up for the late NCP leader and an award also will be instituted in his name, the CM said.

After Pawar’s death, Fadnavis has been holding the finance portfolio.

Apart from providing relief for farmers, the budget unveiled proposals related to irrigation projects, women empowerment, youth development and strengthening social welfare schemes.

The budget is based on four pillars -- progressive development, sustainability, inclusiveness and good governance - and outlines initiatives across 16 key sectors, Fadnavis said in his speech.

He said the government plans to develop integrated value chains for 10 to 15 crops to help cultivators access global markets and promote digital platforms such as Agristack and MahaAgri Data Exchange to strengthen the farm ecosystem.

Under irrigation and water management, several major river-linking projects have been proposed, including the Wainganga-Nalgang project worth Rs 94,968 crore and the Damanganga-Vaitarna-Godavari venture costing Rs 13,497 crore.

The state government plans to launch urban water supply and wastewater management projects worth Rs 5,860 crore with World Bank support.

The government aims to create 25 lakh more "Lakhpati Didis" in 2026-27, taking forward the programme that has already benefited 27 lakh women in the state.

Lakhpati Didis are Self-help group (SHG) women members who earn annual household income of over Rs 1 lakh.

In the youth and education sector, the government plans to establish international universities in Navi Mumbai and develop 8 to 10 educational cities. It announced initiatives to promote start-ups, with a target to create 1.25 lakh entrepreneurs and support 50,000 early stage ventures in the next five years.

The budget proposed the establishment of high-performance sports centres for 12 disciplines and sports excellence centres across divisions and districts.

The government plans to set up an Urban Health Commissionerate and establish the Maharashtra Institute of Public Health in Nagpur for training and research. Expansion of the Mahatma Phule Jan Arogya Yojana and new healthcare infrastructure were also announced.

The government allocated Rs 23,150 crore for Scheduled Castes and Rs 21,723 crore for Scheduled Tribes under social justice initiatives.

Several heritage and tourism development projects were proposed, including conservation of 12 forts linked to Chhatrapati Shivaji Maharaj and development of major pilgrimage and tourism circuits.

The government reiterated its commitment of building a USD 5 trillion state economy by 2047, with investments in infrastructure, agriculture, technology and social sectors forming a key part of the roadmap.

Fadnavis announced establishment of a film city at Navargaon in Nagpur district and said the size of the Mumbai Metropolitan Region's economy is estimated to grow from USD 140 billion now to USD 300 billion by 2030.

He announced a plan for development around Virar, Boisar and Thane bullet train stations to take advantage of the under-construction high-speed rail corridor between Mumbai and Ahmedabad.

The CM said a third Mumbai will be developed around the Atal Setu area in Raigad district. A fourth Mumbai is planned near Vadhvan Port in Palghar district.

Fadnavis said the budget lays out a roadmap for achieving the goal of transforming the state into a USD 5 trillion economy in 20 years under the "Developed Maharashtra 2047".

He announced that 2026-27 will be observed as the "Year of Social Equality and Harmony" to mark anniversaries related to social reformers Mahatma Jyotirao Phule, Sant Gadge Baba and Dr B R Ambedkar.

A committee will be formed to commemorate the 200th birth anniversary of Mahatma Phule in 2027, and various social initiatives will be launched during the year.

As part of efforts to promote rural development, the government will develop a Sant Gadge Baba pilgrimage circuit by linking his birthplace, workplace and memorial sites.

On the occasion of the centenary of Dr Ambedkar's 'Chavdar Tale Satyagrah' (struggle for social equality) in Mahad, the government will prepare a development plan to improve infrastructure at the historic site (a lake) in Raigad district.

The CM paid tributes to Shiv Sena founder Bal Thackeray on his birth centenary, stating that work on a government memorial dedicated to him at Dadar in Mumbai has begun.

Paying homage to late deputy CM Ajit Pawar, who presented the state budget 11 times, Fadnavis said his leadership helped maintain fiscal stability in the state.

In the farm sector, the government aims to increase the agricultural GDP from USD 55 billion now to USD 500 billion by 2047. PTI MR NR VT RSY