He stated that the state's economy is currently worth $660 billion in 2025-26, and it needs to add another $340 billion to reach the $1 trillion mark.
He further added that the state has added a record $55 billion in a single year, reiterating that the state will achieve a $1 trillion economy status by 2029 or, at most, by 2030-31 due to potential slowdowns in growth caused by events like war or El Niño.
In his response to the state Assembly on the annual budget for 2026-27, the chief minister addressed the concerns raised by opposition parties regarding the state's ambition to achieve a $1 trillion economy by 2030 and a $5 trillion economy by 2025-26.
Fadnavis emphasized that while the 2026-27 budget is expansionary, it remains strictly within the framework of fiscal discipline and prudence. He countered the opposition's concerns regarding the state's debt levels by highlighting several key indicators of financial health.
The Chief Minister noted that the fiscal deficit has been maintained at 2.88 per cent of the Gross State Domestic Product (GSDP). This is well within the 3 per cent limit set by the Fiscal Responsibility and Budget Management (FRBM) Act, signaling a commitment to sustainable borrowing. He pointed out that the revenue deficit is projected at approximately 0.37 per cent of the GSDP.
He argued that maintaining this figure below 1 per cent ensures that the state is not excessively borrowing to fund its daily operational expenses, but rather focusing on capital creation.
He clarified that Maharashtra's debt-to-GSDP ratio of 18.2 per cent, which is below 25 per cent of GSDP, makes the state one of the healthiest in the country, compared to other large industrialized states such as Tamil Nadu (25.6 per cent), Andhra Pradesh (33 per cent), Madhya Pradesh (30 per cent), Telangana (23.8 per cent), and Karnataka (23 per cent). He admitted that Gujarat and Odisha have debt-to-GSDP rates of 15.3 per cent and 13.1 per cent, respectively.
He stated that the state's debt was estimated at ₹9.32 lakh crore in 2025-26, adding that the state's borrowing capacity is backed by a robust and growing GSDP.
CM Fadnavis, while painting a picture of a healthy state economy, stated that revenue receipts are estimated at ₹6,16,000 crore in 2025-26, compared to ₹1,55,000 crore in 2013-14, while capital expenditure is estimated at ₹2 lakh crore, compared to ₹25,129 crore during the same period. He claimed that the state has sufficient room to raise debt, considering the growth of the economy.
CM Fadnavis said that Maharashtra's GSDP growth rate is estimated at 7.9 per cent, which is higher than the country's GDP in 2025-26. "Maharashtra is number one in attracting Foreign Direct Investment (FDI), in startups, Unicons, forest cover, and GST collection," he added.
He admitted that the state ranks fifth in per capita income, which is projected at ₹3,47,903 in 2025-26, compared to ₹3,17,000 in 2024-25. "The Maharashtra economy is the largest in size in 35 countries, including Austria, Thailand, and the Philippines," he said.