In the Union Budget 2026–27, Maharashtra has been allocated a larger share of central taxes, amounting to ₹98,306 crore—representing a 6.44% share of the total Union Budget. This figure is ₹20,000 crore higher than that of the previous year, thereby enabling the acceleration of the state's developmental initiatives. Chief Minister Devendra Fadnavis emphasized accelerating work on the high-speed rail corridors connecting Mumbai–Pune and Pune–Hyderabad. Conversely, Aditya Thackeray criticized this budget, pointing out that despite Maharashtra being the highest revenue-generating state in the entire country, it has been allocated a mere ₹98,306 crore.
Central Allocations for Maharashtra
Specific allocations for Maharashtra include ₹378 crore for rural roads, ₹283 crore for economic clusters, ₹385 crore for tertiary medical education, ₹207 crore for irrigation, and ₹313 crore for human skill development. Furthermore, the railway budget allocation has seen a significant increase; previously standing at ₹1,170 crore, it has now been raised to ₹24,000 crore. This substantial allocation is expected to accelerate various projects—including expressways, railways, and human development initiatives—and will have a profound impact on the state's industrial sector.
Impact of the State Budget
Chief Minister Fadnavis presented Maharashtra's State Budget for the fiscal year 2026–27 in March 2026. The budget includes provisions for major expenditures, such as an allocation of ₹20,000 crore for waiving electricity dues for farmers (specifically for 7.5 HP pumps). Additionally, ₹20,000 crore has been allocated for the Mumbai Metro and road infrastructure, while ₹30,000 crore has been earmarked for rural roads, water supply, healthcare, and agriculture. Largely due to these welfare schemes and development projects, the state's debt has risen from ₹9.74 lakh crore in 2025–26 to over ₹11 lakh crore.
An analysis of the State Budget reveals that the largest share of funds has been allocated to the Mumbai Metropolitan Region (MMR), followed by the Pune, Nagpur, and Konkan regions. A significant portion of the funds is also directed toward the government's various welfare schemes.
The following are the key highlights of the Maharashtra Budget 2026–27, representing the areas on which the government will place special emphasis:
- Total Maharashtra Budget: ₹7.69 lakh crore total expenditure
- High-Speed Rail & Infrastructure (roads, metro, connectivity): Around ₹1.2 lakh crore capital expenditure for infrastructure and connectivity projects
- Relief for Farmers (electricity subsidy): ₹20,000 crore power-bill waiver for farmers using 7.5 HP pumps
- Farm Loan Waiver: Up to ₹2 lakh loan waiver per farmer
- Women’s Empowerment – Majhi Ladki Bahin Scheme: ₹26,500 crore
- Infrastructure Development (metro, roads, coastal road, rail): ₹20,000 crore
- Electricity Subsidies (farm sector): ₹20,000 crore relief package
- Fiscal Position: Fiscal deficit estimated at ₹1.50 lakh crore
