Maharashtra’s Finance Minister, Ajit Pawar, presented the state’s Budget for the financial year 2025-26 on Monday, March 10. The budget includes a range of developmental and infrastructural proposals aimed at boosting the state's economy, infrastructure, and overall growth.
Maharashtra’s Economic Outlook for 2025-26
The state's economic growth is projected to rise by 7.3% in the financial year 2024-25, surpassing the national growth rate of 6.5%. According to the pre-Budget Economic Survey, this growth will be driven by advancements in agriculture, industry, and services sectors.
Sectoral Growth Projections:
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Agriculture and allied activities: 8.7%
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Industry: 4.9%
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Services: 7.8%
In terms of Gross State Domestic Product (GSDP), Maharashtra remains a leader among Indian states. The nominal GSDP for 2023-24 is estimated at ₹40,55,847 crore, up from ₹36,41,543 crore in 2022-23. For 2024-25, the revised estimate stands at ₹45,31,518 crore.
Key Infrastructure Projects Announced
1. Mumbai’s Third Airport
One of the most significant announcements was the proposal for a third airport in Mumbai, aimed at alleviating congestion at the city’s existing airports. This new airport will be located near the Vadhvan port in the Palghar district, a strategic area that will also serve as a major transportation hub with the Mumbai-Ahmedabad bullet train station nearby.
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Vadhvan Port Development: The port is expected to become operational by 2030.
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Mumbai’s Metropolitan Growth: The Mumbai Metropolitan Region (MMR) is being developed as a growth hub, with the ambition to achieve a $1.5 trillion economy by 2047.
2. New Metro Connectivity
To further improve the region's connectivity, the Maharashtra government plans to establish a metro link between Chhatrapati Shivaji Maharaj International Airport (CSMIAL) and Navi Mumbai International Airport (NMIAL). This will facilitate seamless transportation between the two major airports and ease congestion.
3. Shirdi Airport
A night landing facility will soon be introduced at the Shirdi Airport, improving accessibility for domestic and international flights.
4. Vadhvan Port as an Economic Hub
The Vadhvan Port will not only enhance shipping and cargo handling capabilities but will also serve as a significant economic hub for the state, with the development of related infrastructure and transportation systems.
Financial and Economic Developments
Maharashtra’s Growth in Nominal GSDP
Maharashtra remains at the forefront of India's economic development, with the nominal GSDP leading the list of top Indian states in 2023-24. This is a reflection of the state's thriving industrial, agricultural, and service sectors.
Maharashtra's per capita income stands at ₹2,78,681, which is lower than states like Tamil Nadu and Karnataka, but it remains competitive in comparison to the national average.
State Debt
The economic survey highlighted that Maharashtra's debt stock is set to increase by 10.1% from the previous year. The debt stock will be 17.3% of the state’s GSDP, which is within the fiscal norms. As per the budget estimates, the state's debt stock is ₹7,82,991 crore, with an interest liability of ₹56,727 crore.
Supplementary Demands
The state government has also sought additional funding of ₹6,486 crore through supplementary demands, which will be used for ongoing and upcoming development projects across various sectors.
Social Welfare Initiatives
1. Ladki Bahin Scheme
A significant allocation of ₹36,000 crore has been made for the Ladki Bahin Scheme, aimed at supporting women and children in the state. The scheme has already seen substantial expenditure, and further funding will be directed towards its continued implementation.
2. Health and Senior Citizens Policy
Ajit Pawar announced a new health and senior citizens policy to improve healthcare access and welfare for the elderly population in Maharashtra.
3. Pradhan Mantri Awas Yojana Subsidy
Under the Pradhan Mantri Awas Yojana (PMAY), the government has approved the construction of 20 lakh houses under the Rural Phase-2 program. The subsidy for house construction will be increased by ₹50,000 to further ease the financial burden on beneficiaries.
4. Marathi Bhasha Sanman Din
A new cultural initiative was introduced with the declaration that October 3 will be celebrated as Marathi Bhasha Sanman Din every year, recognizing the significance of the Marathi language.
Tax Reforms and Economic Policies
1. CNG Vehicle Tax Increase
The Maharashtra government has announced a 1% increase in the tax on CNG vehicles. This adjustment is part of the state’s ongoing efforts to balance environmental concerns with economic needs.
2. Cybersecurity Initiatives
In a bid to enhance digital safety, the Maharashtra government will establish a Maharashtra Cyber Crime Security Corporation. This initiative will include a high-tech command control center based on artificial intelligence, to improve cybercrime prevention and response mechanisms.
Memorials for Key Figures
The Maharashtra government also unveiled plans to honor key historical and political figures by constructing grand memorials:
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A memorial for Chhatrapati Shivaji Maharaj will be built in Agra.
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A memorial for Chhatrapati Sambhaji Maharaj will be constructed in Sangameshwar, Konkan.
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A memorial in Panipat, Haryana, will celebrate Maratha valor.
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A grand memorial for Atal Bihari Vajpayee will be constructed in Mumbai to mark his birth centenary year.
Maharashtra’s Vision for 2047
The Maharashtra Budget 2025-26 presents an ambitious vision for the state’s future. With a focus on infrastructure development, economic growth, social welfare, and innovation in technology and cybersecurity, the state is positioning itself to be a leader in India’s development. The goal is to contribute significantly to the Prime Minister's vision of a Viksit Bharat by 2047. Through strategic investments, infrastructure projects like the new airport, and initiatives to boost industries, Maharashtra aims to solidify its place as one of the most prosperous and advanced states in India.
With inputs from agencies
Image Source: Multiple agencies
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