Farm loan waiver fulfils Mahayuti pre-poll promise, no scheme will be discontinued: Fadnavis

Mumbai, Mar 6 (PTI) Maharashtra Chief Minister Devendra Fadnavis on Friday said the announcement of a farm loan waiver scheme in the state budget for 2026-27 fulfils a promise made by Mahayuti parties ahead of the 2024 assembly polls.

In his budget speech, Fadnavis, who holds the finance portfolio, announced Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna, a loan waiver scheme for farmers under which crop loans of up to Rs 2 lakh till September 30, 2025, will be written off.

He announced a Rs 50,000 incentive for other eligible farmers who are regular in repayments of loans.

Later, talking to reporters, the CM said in the budget, the capital expenditure has increased by 21 per cent --- from Rs 93,000 crore to Rs 1,12,000 crore. This would lead to an increase in capacity building and strengthening basic infrastructure.

Fadnavis acknowledged that there was a "lot of stress", but the government has decided not to stop any scheme, an apparent reference to the Mukhyamantri Ladki Bahin Yojana, a direct cash transfer programme targeted at poorer women.

On the contrary, it has been decided to mobilise resources and increase capital expenditure, he maintained.

Giving details of the farm loan waiver, Fadnavis said the cut off date for availing benefit under the scheme is September 30, 2025.

"We have decided to waive farm loan up to Rs 2 lakh. We have also decided to give Rs 50 lakh (as incentive) to those who pay loan regularly," stated Fadnavis, who became the first CM of Maharashtra to present a budget.

The farm loan waiver scheme fulfils a promise made by Mahayuti parties ahead of the 2024 assembly polls, he stressed.

The Mahayuti comprises the BJP, Shiv Sena and NCP.

He said the committee formed to study the loan waiver has started gathering information on the number of farmers requiring the credit relief.

As per the information gathered from banks, so far, the panel has received details of 28 lakh-30 lakh farmers. It will still take 15-25 days to compile the entire data, the CM stated.

"This will not be a restrictive loan waiver," Fadnavis emphasised.

There are 20 lakh accounts linked to farmers that have repaid loans regularly and are eligible for the Rs 50,000 incentive, the CM maintained.

Fadnavis asserted efforts have been taken keep fiscal and revenue deficits as per Fiscal Responsibility and Budget Management (FRBM) Act guidelines.

He said the Act mandates that fiscal deficit (shortfall in government's income and spending) should be 3 per cent of the GSDP, but the state has managed to keep it to 2.7 per cent. Revenue deficit, on the other hand, is under 1 per cent of the GSDP.

Revenue deficit is the excess of revenue expenditure of the government over its revenue receipts.

Loans should be below 28 per cent and the state's loan is 18.5 per cent. The state has also maintained a good debt-GDP ratio, the chief minister stated.

Fadnavis said the size of the state's economy was around Rs 51 lakh crore. Only 29 countries have economy bigger than Maharashtra. The state has a bigger economy than countries like Austria, Thailand, Norway and the Philippines.

Maharashtra's economy is expected to grow at 7.9 per cent in 2025-26, higher than the national rate of 7.3 per cent. However, the agriculture growth rate has fallen, Fadnavis said, citing crop losses due to heavy rains.

The Maharashtra budget is based on the road map for Viksit Bharat (developed India), he affirmed.

He informed that Rs 6,000 crore has been earmarked for solid waste management and sewage treatment in cities.

The chief minister announced that a scheme named after legendary tribal leader Birsa Munda will be started for the welfare of Adivasi students.

He declared a plan to increase the state's forest cover to 33 per cent from 21-23 per cent now by undertaking a massive tree plantation drive.

"We have to increase it by (planting) 225 crore trees. We are undertaking 300 crore tree plantation over the next seven years," Fadnavis insisted.

Deputy Chief Minister Eknath Shinde also said the government has fulfilled its pre-poll poll promise by providing relief to cultivators.

Shinde said the budget has given emphasis on infrastructure development. Capital expenditure has been increased for basic infrastructure.

Asked when the government will implement the poll promise of hiking stipend under the Ladki Bahin Yojana from Rs 1,500 to Rs 2,100 per month, Shinde, who was the CM when the scheme was launched, said it will be done at an appropriate time.

Another Deputy Chief Minister, Sunetra Pawar, termed the budget as inclusive. PTI PR NR BNM RSY