Maharashtra debt to rise by 11 pc to touch Rs 9.3 lakh cr in 2025-26: Economic Survey

Mumbai, Mar 7 (PTI) Maharashtra's outstanding debt is expected to rise by 11.1 per cent in 2025-26, though the overall debt burden will remain within the limits prescribed under fiscal responsibility norms, according to the Economic Survey 2025-26 tabled in the state legislature.

The survey, which was tabled on Thursday, said the Debt-to-Gross State Domestic Product (GSDP) ratio is estimated at 18.3 per cent in 2025-26, well below the 25 per cent ceiling stipulated under Maharashtra Fiscal Responsibility and Budget Management (FRBM) Rules 2006.

"The state's total outstanding debt is estimated at around Rs 9.3 lakh crore in 2025-26, comprising accumulated public debt and other liabilities. Domestic borrowings account for the major share of the debt stock," it said.

According to the survey, domestic debt alone is projected at Rs 7,39,859 crore, accounting for 79.4 per cent of the total outstanding debt of the state. It added that the state government mainly raises resources through market borrowings and other liabilities to finance capital expenditure and development programmes.

Meanwhile, the interest payment burden is projected to increase to Rs 64,659 crore in 2025-26, up from Rs 54,687 crore in 2024-25, it said, reflecting the rising cost of servicing the state's growing liabilities.

Interest payments form a key component of the state's revenue expenditure, which is estimated at Rs 6,06,855 crore in 2025-26, the survey said.

The state government is also expected to raise Rs 1,35,783 crore through borrowings and other liabilities in 2025-26, primarily to finance fiscal deficit and capital spending.

According to the survey, revenue receipts are estimated at Rs 5,60,964 crore, while revenue expenditure is pegged at Rs 6,06,855 crore, resulting in a revenue deficit of Rs 45,891 crore in 2025-26.

Despite the rise in borrowings and interest payments, the state's fiscal indicators remain within the limits mandated under the FRBM framework, the report said, indicating efforts to maintain fiscal prudence while continuing development spending. PTI MR BNM