Mumbai, March 6 – The Maharashtra Chief Minister, Devendra Fadnavis, announced on Friday that the farm loan waiver scheme in the state's 2026-27 budget fulfills a promise made by the Mahayuti coalition ahead of the 2024 assembly elections.
In his budget speech, Fadnavis, who holds the finance portfolio, announced the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojana, a loan waiver scheme for farmers, under which crop loans of up to Rs 2 lakh until September 30, 2025, will be written off.
He also announced a Rs 50,000 incentive for other eligible farmers who regularly repay their loans.
Later, speaking to reporters, the CM said that capital expenditure has increased by 21 per cent – from Rs 93,000 crore to Rs 1,12,000 crore. This will lead to an increase in capacity building and strengthening basic infrastructure.
Fadnavis acknowledged that there was "a lot of stress", but the government has decided not to discontinue any scheme, seemingly referring to the Mukhyamantri Ladki Bahin Yojana, a direct cash transfer program aimed at poorer women.
Instead, the government has decided to mobilize resources and increase capital expenditure, he maintained.
Fadnavis said that the deadline for benefiting from the loan waiver scheme is September 30, 2025.
"We have decided to waive farm loans up to Rs 2 lakh. We have also decided to give Rs 50 lakh (as an incentive) to those who pay their loans regularly," stated Fadnavis, who became the first Chief Minister of Maharashtra to present a budget.
The farm loan waiver scheme fulfills a promise made by the Mahayuti coalition ahead of the 2024 assembly elections, he emphasized.
The Mahayuti comprises the BJP, Shiv Sena, and NCP.
He said that the committee formed to study the loan waiver has started gathering information on the number of farmers requiring credit relief.
According to information gathered from banks, the panel has received details of 28-30 lakh farmers. It will still take 15-25 days to compile the entire data, the CM stated.
"This will not be a restrictive loan waiver," Fadnavis emphasised.
There are 20 lakh accounts linked to farmers that have repaid loans regularly and are eligible for the Rs 50,000 incentive, the CM maintained.
Fadnavis asserted that efforts have been taken to keep fiscal and revenue deficits in line with the Fiscal Responsibility and Budget Management (FRBM) Act guidelines.
He said that the Act mandates that the fiscal deficit should be 3 per cent of GSDP, but the state has managed to keep it at 2.7 per cent. Revenue deficit, on the other hand, is under 1 per cent of GSDP.
Revenue deficit is the excess of government revenue expenditure over its revenue receipts.
Loans should be below 28 per cent, and the state's loan is 18.5 per cent. The state has also maintained a good debt-GDP ratio, the chief minister stated.
Fadnavis said that the state's economy was around Rs 51 lakh crore. Only 29 countries have an economy larger than Maharashtra. The state has a larger economy than countries like Austria, Thailand, Norway, and the Philippines.
Maharashtra's economy is expected to grow at 7.9 per cent in 2026-27, higher than the national rate of 7.3 per cent. However, the agriculture growth rate has fallen due to heavy rains, Fadnavis said.
The Maharashtra budget is based on the roadmap for Viksit Bharat (developed India), he affirmed.
He informed that Rs 6,000 crore has been earmarked for solid waste management and sewage treatment in cities.
The chief minister announced that a scheme named after the legendary tribal leader Birsa Munda will be launched for the welfare of Adivasi students.
He declared a plan to increase the state's forest cover to 33 per cent from the current 21-23 per cent by undertaking a massive tree plantation drive.
"We have to increase it by (planting) 225 crore trees. We are undertaking 300 crore tree plantation over the next seven years," Fadnavis insisted.
Deputy Chief Minister Eknath Shinde also said the government has fulfilled its pre-poll promise by providing relief to cultivators.
Shinde said the budget has given emphasis on infrastructure development. Capital expenditure has been increased for basic infrastructure.
Asked when the government will implement the poll promise of hiking the stipend under the Ladki Bahin Yojana from Rs 1,500 to Rs 2,100 per month, Shinde, who was the CM when the scheme was launched, said it will be done at an appropriate time.
Another Deputy Chief Minister, Sunetra Pawar, termed the budget as inclusive.
