Mumbai: Maharashtra’s revenue deficit widened sharply to nearly ₹30,000 crore during 2024-25—more than three times the original Budget Estimate—as the State increasingly depended on borrowings to bridge the gap between its income and expenditure, according to the Comptroller and Auditor General’s State Finances Audit Report tabled in the Maharashtra Legislature.
The report said Maharashtra recorded a revenue deficit of ₹29,994.76 crore against the Budget Estimate of ₹9,733.76 crore. The deficit was also significantly higher than the ₹13,754 crore recorded during 2023-24.
Borrowings and other liabilities reached ₹1,24,208.74 crore during 2024-25, exceeding the Budget Estimate by approximately 25 per cent. The CAG observed that the State’s fiscal balance was being sustained largely through debt rather than corresponding revenue growth.
The fiscal deficit stood at ₹1,24,208.74 crore, equivalent to 2.74 per cent of the State’s Gross State Domestic Product. Although this remained below the three per cent ceiling prescribed under the Fiscal Responsibility and Budget Management (FRBM) framework, the CAG warned that the rising primary deficit indicated increasing debt pressure.
The primary deficit rose to ₹70,753.63 crore during 2024-25, compared with ₹44,907.45 crore in the previous financial year.
The report noted that revenue expenditure increased to ₹5.12 lakh crore, exceeding the State’s revenue receipts of ₹4.82 lakh crore. It said widening revenue and primary deficits reflected structural imbalances and greater dependence on borrowing to finance current expenditure.
Maharashtra’s total outstanding liabilities increased to ₹8.59 lakh crore at the end of March 2025, up from ₹7.33 lakh crore in the previous year. Liabilities grew by 17.28 per cent in a single year and by more than 60 per cent between 2020-21 and 2024-25.
The CAG also flagged the declining repayment ratio of internal debt, which fell to 31 per cent during 2024-25, indicating growing future repayment obligations and weakening repayment capacity.
Despite these concerns, the State’s liabilities remained at 18.96 per cent of GSDP—below the 25 per cent ceiling under the FRBM framework. However, the CAG cautioned that accelerating debt growth and increased net borrowings required stronger revenue mobilisation and more efficient capital expenditure to preserve medium-term fiscal sustainability.
