Rane Questions Maharashtra’s Rs 51 Lakh Crore GSDP Projection
Participating in a discussion on the state budget, Mr. Rane raised concerns over the widening gap between the state’s income and expenditure, noting that the revenue receipt stands at Rs 6.13 lakh crore against an expenditure of Rs 6.56 lakh crore.
Mumbai: Shiv Sena MLA Nilesh Rane on Tuesday cast doubts over the Maharashtra government’s economic projections, questioning the credibility of the Rs 51 lakh crore Gross State Domestic Product (GSDP) estimate for 2026–27 and alleging that key fiscal indicators appear favourable only because of the inflated projection. He urged the government to explain how the Rs 51 lakh crore GSDP was calculated.
Participating in a discussion on the state budget, Mr. Rane raised concerns over the widening gap between the state’s income and expenditure, noting that the revenue receipt stands at Rs 6.13 lakh crore against an expenditure of Rs 6.56 lakh crore. He sought clarification from the government on how it plans to bridge this Rs 40,000 crore deficit.
While he complimented the government for keeping the debt-to-GDP ratio below 20 per cent, Mr. Rane cautioned that this is merely a “financial indicator” and not a true reflection of the state’s actual economic muscle.
How did you arrive at this GSDP figure of Rs 51 lakh crore? The Economic Survey claims that Maharashtra’s GSDP increased by Rs 5 lakh crore every year from 2019-20 to 2026-27. Is it realistic to expect the exact same escalation of Rs 5 lakh crore every single year? Our fiscal deficit currently stands at 2.7 per cent, staying below the 3 per cent benchmark only because of this projected increase. Similarly, the state’s debt remains less than 20 per cent of the GSDP solely because of this escalation,” Mr. Rane said.
The MLA pointed out a significant disparity where Maharashtra ranks fifth in per capita income despite having the highest GDP in India. He observed that states like Karnataka and Telangana, which have lower total GDPs, actually outperform Maharashtra in per capita earnings. Rane noted that GDP growth is often bolstered by borrowings, making it essential to reconcile these figures with actual wealth distribution rather than relying on surface-level statistics.
Mr. Rane also expressed sharp disapproval regarding Maharashtra’s share in Central tax devolution and presented a stark mathematical breakdown of the state’s contribution versus its receipts. “Maharashtra contributed Rs 7.61 lakh crore in direct taxes and Rs 3.61 lakh crore. But it received only Rs 3.09 lakh crore from the Centre. For every Rs 100 Maharashtra gives to the Centre, the state receives only about Rs 4 in return. Uttar Pradesh receives Rs 2.50 for every Rs 1 contributed. Maharashtra must get its share in the GST refund from 6.4 per cent to 7.4 per cent. This one per cent rise would be enough to wipe out the state’s fiscal deficit,” he said.
