Mumbai: Devendra Fadnavis on Wednesday strongly countered the Opposition’s allegations that Maharashtra’s debt burden is rising, asserting that the state’s economy remains among the strongest in the country and continues to expand rapidly.
Maharashtra Would Rank 30th If It Were an Independent Nation
Replying to the debate on the state budget in the Maharashtra Legislative Assembly, the Chief Minister highlighted the scale of Maharashtra’s economy, stating that if the state were considered an independent country, it would rank around the 30th largest economy in the world. According to him, Maharashtra’s economy has already surpassed that of more than 35 countries, including the Philippines, Bangladesh, Austria, Thailand, Norway and Vietnam. If the current growth rate continues, he said, the state’s economy could overtake those of the United Arab Emirates and Singapore within the next two years.
Expressing confidence about the state’s economic trajectory, the Chief Minister said Maharashtra is on track to become India’s first one-trillion-dollar state economy. He also pointed out that the state ranks first in the country in several economic indicators, including foreign direct investment, non-oil exports, start-ups, unicorn companies, bank deposits, credit disbursement, GST collection and tree cover.
Debt Rise Contextualized Against Massive GSDP Growth
Presenting comparative figures to counter concerns about rising debt, Fadnavis said Maharashtra’s debt stock has increased from around Rs 3 lakh crore in 2013 to Rs 9.32 lakh crore at present. However, during the same period, the state’s GSDP has grown significantly from Rs 16 lakh crore to Rs 51 lakh crore.
He added that Maharashtra’s debt-to-GSDP ratio stands at around 18 per cent, which is lower than many other states such as Telangana, Karnataka, Andhra Pradesh, Kerala and Tamil Nadu, while states like Punjab and Rajasthan have significantly higher ratios. He noted that Gujarat and Odisha have slightly lower ratios.
While acknowledging that Maharashtra currently ranks fifth in the state in per capita income, Fadnavis said the state’s large population and economic size often influence such rankings. Despite being the second most populous state in India, he said Maharashtra has continued to maintain strong growth rates, which is uncommon for large economies.
Welfare Schemes Implemented Without Fiscal Discipline Compromise
He emphasised that welfare schemes have not come at the cost of fiscal discipline. Initiatives such as the Laadki Bahin scheme and free electricity for farmers have been implemented while keeping the fiscal deficit at about 2.78 per cent of the GSDP and the revenue deficit close to one per cent.
The Chief Minister also pointed to a sharp increase in capital expenditure, which has risen from Rs 25,000 crore in 2013–14 to nearly Rs 2 lakh crore. According to him, this spending is not limited to large infrastructure projects such as roads and bridges but is reaching ordinary households through programmes like the Pradhan Mantri Awas Yojana, under which 30 lakh houses are being built in rural areas. Many of these homes will include rooftop solar systems aimed at reducing electricity bills for poor households to nearly zero.
He further said, The Opposition should not focus merely on the size of the loans taken by the government but should examine how the borrowed funds are being utilised for development. He maintained that the government has kept the debt-to-Gross State Domestic Product (GSDP) ratio under control despite increasing investments in infrastructure and welfare schemes.
Ambitious Rs 87,000 Crore Water Project for Drought-Prone Marathwada
Fadnavis said the government is also investing in long-term water infrastructure projects. These include an ambitious Rs 87,000 crore programme for drought-prone Marathwada and a plan to divert 78 TMC of water from the Ulhas basin. He added that major water supply projects for the Mumbai Metropolitan Region are underway, including the Koshir and Shilar dams, while the Gargai dam project has already been approved. Additional projects such as the Daman Ganga–Pinjal scheme are expected to supply around 13 TMC of water to the region. Once completed, these projects are expected to address the region’s water needs for the next 30 to 40 years.
On irrigation, the Chief Minister said the state’s final irrigation potential is estimated at 81 lakh hectares, of which capacity for around 57 lakh hectares has already been created with nearly 70 per cent utilisation.
Clean Energy Push Targets 52% Non-Conventional Power by 2030
Highlighting the state’s push towards clean energy, Fadnavis said Maharashtra aims to generate 52 per cent of its power from non-conventional sources by 2030 and 65 per cent by 2035. A new battery-based technology for storing green energy is also being developed, with a budgetary allocation of Rs 1,650 crore and expected private investment of around Rs 3.12 lakh crore.
He added that the state’s power generation capacity, currently about 45,000 MW, is expected to rise to 82,000 MW by 2030. Industrial power consumption grew by around eight per cent last year, higher than the national average, he said, adding that electricity tariffs have been kept low. Household tariffs for consumption up to 100 units are expected to decline by about 24 per cent over the next five years.
Fadnavis concluded by stating that while financial pressures exist, the government has both the capacity and the strategy to manage them while sustaining growth and expanding welfare initiatives.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
