Farm Loan Waiver Tops Maharashtra’s Rs 97,706-Crore Supplementary Demands

Mumbai: Amid mounting concerns over Maharashtra’s rising debt burden, Chief Minister and Finance Minister Devendra Fadnavis on Monday tabled supplementary demands worth Rs 97,706.40 crore in both Houses of the State Legislature on the opening day of the Monsoon Session, unveiling a major fiscal package targeting farmers, women workers, backward-class students and welfare beneficiaries.

The supplementary demands include a record allocation of Rs 20,552 crore for the newly announced Punyashlok Ahilyadevi Holkar Shetkari Karjmukti Yojana, 2026. The move comes amid sustained pressure from the Opposition, which has been demanding a comprehensive farm loan waiver with minimal eligibility conditions. Earlier, Mr. Fadnavis had stated that the loan waiver scheme would entail an expenditure of Rs 36,585 crore.

The government clarified that although supplementary demands totalling Rs 97,706.40 crore had been presented, the actual additional burden on the State exchequer would be Rs 74,817 crore.

In the Budget for 2026-27, Mr. Fadnavis projected a revenue deficit of Rs 40,552 crore and a fiscal deficit of Rs 1,50,491 crore. Maharashtra’s total debt burden is estimated to rise to Rs 11,02,654 crore in 2026-27, compared with Rs 9,73,989 crore in 2025-26.

The supplementary demands presented during the current Monsoon Session are the largest since the Mahayuti government led by Mr. Fadnavis assumed office. Among the major allocations announced on Monday, the government has proposed Rs 9,934 crore towards interest-free loans for development works under the Centre’s Special Assistance Scheme for Capital Investment.

The State has also earmarked Rs 3,000 crore for payment of interest on loans availed by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), Rs 4,000 crore for clearing electricity bills of government offices through the Composite Billing System, and Rs 5,000 crore for repayment of MSEDCL loans.

An additional provision of Rs 1,750.62 crore has been made to meet the deficit under the Minimum Support Price (MSP) scheme.