Facing a widening resource gap and rising debt, multiple government departments in Maharashtra are exploring alternative funding routes beyond regular budgetary allocations. The financial strain intensified in 2024 after the previous Mahayuti government rolled out a series of welfare measures ahead of the Assembly elections.
In the 2025–26 state budget, the revenue deficit was estimated at Rs 45,892 crore, while the fiscal deficit stood at Rs 1.36 lakh crore. Significant allocations included Rs 36,000 crore for the Ladki Bahin scheme and Rs 14,700 crore for free electricity to farmers. Additionally, the government tabled supplementary demands totalling Rs 1.44 lakh crore on three separate occasions during the fiscal year.
Amid the crunch, the water supply department plans to raise Rs 15,000 crore from the Housing and Urban Development Corporation (HUDCO), particularly after the Centre declined funds for the Jal Jeevan Mission, leaving over 25,000 projects stalled. The funds will be channelled toward schemes that are at least 75% complete.
“We will raise money from HUDCO in a phased manner,” said water supply minister Gulabrao Patil. “We are thinking of raising Rs 5,000 crore in the first phase and the money will be used for projects which are at least 75% complete.”
The forest department is also considering monetising teakwood assets worth Rs 12,000 crore developed by the Forest Development Corporation of Maharashtra Ltd (FDCM) to secure a Rs 6,000-crore loan. Forest minister Ganesh Naik acknowledged the financial pressure stemming from schemes such as Ladki Bahin Yojana. “I will present a proposal soon to the state government regarding taking a Rs 6,000-crore loan based on teakwood property worth Rs 12,000 crore. I hope the cabinet will approve it,” said Naik. “After all, what is the use of this teakwood if it does not enable the department to carry out various works?”.
Meanwhile, the Public Works Department (PWD), which owes nearly Rs 22,000 crore to contractors, is using the Trade Receivables Electronic Discounting System (TReDS) to clear arrears at a 4% discount. According to Milind Bhosale, president of the Maharashtra State Contractors’ Association, contractors may receive Rs 5,000 crore soon but will have to absorb interest-related deductions.
The skill development department is also seeking Rs 4,000 crore from the Asian Development Bank (ADB) for the Mahadrishti project aimed at strengthening industry-aligned training, especially in rural areas.
Source: Hindustan Times
