Maharashtra opens the spending taps with record Rs 97,706-crore supplementary demands

4 min readMumbaiJun 22, 2026 03:02 PM IST

The government has also proposed an additional Rs 777 crore as share capital contribution to District Central Cooperative Banks. (RERPESENTATIONAL IMAGE)

Amid concerns over Maharashtra’s rising fiscal deficit and mounting debt burden, the state government on Monday presented supplementary demands worth Rs 97,706.40 crore the highest since the Mahayuti government assumed office.

A major portion of the allocation has been earmarked for the newly announced Punyashlok Ahilyadevi Holkar farm loan waiver scheme, for which the government has proposed a provision of Rs 20,552 crore. Chief Minister Devendra Fadnavis had earlier said the scheme would cost the state Rs 36,585 crore.

The government has also proposed an additional Rs 777 crore as share capital contribution to District Central Cooperative Banks.

Fadnavis, who is also handling the Finance portfolio following the death of Deputy Chief Minister and Finance Minister Ajit Pawar, tabled the supplementary demands during the ongoing monsoon session.

The size of the demands comes against the backdrop of a strained fiscal situation. In the Budget for 2026-27 presented in March, the government projected a revenue deficit of Rs 40,552 crore and a fiscal deficit of Rs 1,50,491 crore. Maharashtra’s outstanding debt is estimated to rise to Rs 11.02 lakh crore in 2026-27, up from Rs 9.73 lakh crore in the revised estimates for 2025-26.

The latest supplementary demands are significantly higher than those presented in recent sessions. During the Budget Session earlier this year, supplementary demands stood at Rs 11,995.33 crore. In June 2025, the government sought supplementary grants worth Rs 57,509.71 crore, while in the Winter Session of December 2025 it presented demands amounting to Rs 75,286.37 crore.

Among the major allocations announced on Monday is Rs 9,934 crore towards interest-free loans for development projects under the Centre’s Special Assistance Scheme for Capital Investment.

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The government has also proposed a Rs 3,372-crore loan to the Mumbai Metropolitan Region Development Authority (MMRDA) for Metro projects financed through external agencies. An additional Rs 450 crore has been allocated as subordinate debt towards the state’s share in the Thane-Borivali tunnel project and the Orange Gate-Marine Drive underground connectivity project.

Urban infrastructure has received a significant push, with Rs 800 crore allocated under the Urban Infrastructure Development Fund (UIDF) for loans to urban local bodies through the National Housing Bank, and Rs 1,000 crore as share capital contribution to the Maharashtra State Infrastructure Development Corporation.

The power sector accounts for another major chunk of expenditure. The government has proposed Rs 3,000 crore towards interest payments on loans taken by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), Rs 5,000 crore for repayment of its loans, and Rs 4,000 crore towards payment of electricity bills of government offices through the composite billing system.

The supplementary demands also include Rs 1,750.62 crore to meet expenditure under the Minimum Support Price (MSP) scheme and Rs 7,367.32 crore for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), which includes both Central and state contributions.

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For social sector schemes, the government has made an additional provision of Rs 1,734.92 crore towards honorarium, salaries and other expenditure under the Anganwadi Services Scheme.

In infrastructure and administrative spending, Rs 181 crore has been earmarked for civil, furniture and electrical works in the Air India building, recently acquired by the state government to house various departments.

The government has also allocated Rs 100 crore for construction of new administrative buildings under the Vidhan Bhavan expansion project in Nagpur and Rs 28 crore for digitisation of the Maharashtra Legislature Secretariat.

Among smaller allocations, Rs 21.35 crore has been provided for a scheme to distribute eco-friendly vehicles fitted as mobile shops to promote self-employment among persons with disabilities.

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Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues.

Expertise

Current Role: Special Correspondent, The Indian Express, Mumbai.

Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands').

Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including:

State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance.

Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana).

Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides).

Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits.

Unique Credentials & Trustworthiness

Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects.

Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission.

Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards.

Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra.

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