The Deputy Chief Minister of Maharashtra, Mr. Ajit Pawar, presented the Budget for the state for the financial year 2024-25 on June 28, 2024.
Budget Highlights
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The Gross State Domestic Product (GSDP) of Maharashtra for 2024-25 (at current prices) is projected to be Rs 42,67,771 crore, amounting to growth of 5.5% over 2023-24 revised estimates.
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Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 6,12,293 crore, an increase of 2% over the revised estimates of 2023-24. In addition, debt of Rs 57,198 crore will be repaid by the state.
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Receipts (excluding borrowings) for 2024-25 are estimated to be Rs 5,01,938 crore, an increase of 3% as compared to the revised estimate of 2023-24.
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Revenue deficit in 2024-25 is estimated to be 0.5% of GSDP (Rs 20,051 crore), almost the same as the revised estimates for 2023-24. In 2023-24, the revenue deficit is expected to be Rs 3,409 crore higher than the budget estimate.
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Fiscal deficit for 2024-25 is targeted at 2.6% of GSDP (Rs 1,10,355 crore). In 2023-24, as per the revised estimates, fiscal deficit is expected to be 2.8% of GSDP, 17% higher than the budget estimate for 2023-24.
Policy Highlights
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Women development: Under Mukhya Mantri Mazhi Ladki Bahin Yojana the state government will provide Rs 1,500 per month to eligible women aged between 21 and 60 years. It will be implemented from July 2024 and is expected to cost Rs 46,000 crore every year. The state government will also reimburse 100% of tuition and examination fees for higher education to girls from other backward classes and economically weaker sections with annual family income up to eight lakh rupees per annum.
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Cooking gas: More than 52 lakh families will be provided with three free gas cylinders per year under the Mukhya Mantri Annapurna Yojana.
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Agriculture: Gaon Tethe Godam scheme will be implemented for storage of agricultural produce at the village level. The state government will also provide free electricity for agriculture pumps up to 7.5 horse power capacity under the Mukhya Mantri Baliraja Vij Savlat Yojana. It will cover 44 lakh farmers with a total subsidy expenditure of Rs 14,761 crore.
Maharashtra’s Economy
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Figure 1 : Growth in GSDP and sectors in Maharashtra at constant prices (2011-12) Note: Agriculture includes mining and quarrying; Manufacturing includes construction and electricity. These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation. |
Budget Estimates for 2024-25
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Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 6,12,293 crore. This is an increase of 2% over the revised estimate of 2023-24. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 5,01,938 crore and net borrowings of Rs 80,273 crore. Total receipts for 2024-25 (other than borrowings) are expected to register an increase of 3% over the revised estimate of 2023-24.
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Revenue deficit in 2024-25 is estimated to be 0.5% of GSDP (Rs 20,051 crore), largely similar to the revised estimates for 2023-24. Fiscal deficit for 2024-25 is targeted at 2.6% of GSDP (Rs 1,10,355 crore), lower than the revised estimates for 2023-24 (2.8% of GSDP).
Table 1 : Budget 2024-25 - Key figures (in Rs crore)
Items |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
Total Expenditure |
5,18,717 |
6,02,008 |
6,56,495 |
9% |
6,69,491 |
2% |
(-) Repayment of debt |
44,795 |
54,558 |
55,997 |
3% |
57,198 |
2% |
Net Expenditure (E) |
4,73,922 |
5,47,450 |
6,00,498 |
10% |
6,12,293 |
2% |
Total Receipts |
5,01,023 |
5,83,156 |
6,37,062 |
9% |
6,39,408 |
0.4% |
(-) Borrowings |
94,702 |
1,31,207 |
1,48,520 |
13% |
1,37,470 |
-7% |
Net Receipts (R) |
4,06,321 |
4,51,949 |
4,88,542 |
8% |
5,01,938 |
3% |
Fiscal Deficit (E-R) |
67,602 |
95,501 |
1,11,956 |
17% |
1,10,355 |
-1% |
as % of GSDP |
1.9% |
2.5% |
2.8% |
|
2.6% |
|
Revenue Deficit |
1,936 |
16,122 |
19,532 |
21% |
20,051 |
3% |
as % of GSDP |
0.1% |
0.4% |
0.5% |
|
0.5% |
|
Primary Deficit |
25,913 |
44,853 |
63,378 |
41% |
53,628 |
-15% |
as % of GSDP |
0.7% |
1.2% |
1.6% |
|
1.3% |
|
GSDP |
36,45,884 |
38,79,792 |
40,44,251 |
4% |
42,67,771 |
5.5% |
Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Annual Financial Statement, Maharashtra Budget 2024-25; PRS.
Expenditure in 2024-25
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Revenue expenditure for 2024-25 is proposed to be Rs 5,19,514 crore, an increase of 3% over the revised estimate of 2023-24. This includes the expenditure on salaries, pensions, interest, grants, and subsidies.
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Capital outlay for 2024-25 is proposed to be Rs 85,292 crore, nearly the same as the revised estimate of 2023-24. Capital outlay indicates the expenditure towards creation of assets.
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In 2024-25, loans and advances by the state are expected to be Rs 7,487 crore, lower than the revised estimates by 19%.
Table 2 : Expenditure budget 2024-25 (in Rs crore)
Items |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
Revenue Expenditure |
4,07,614 |
4,65,645 |
5,05,647 |
9% |
5,19,514 |
3% |
Capital Outlay |
61,644 |
73,901 |
85,657 |
16% |
85,292 |
0% |
Loans given by the state |
4,664 |
7,904 |
9,194 |
16% |
7,487 |
-19% |
Net Expenditure |
4,73,922 |
5,47,450 |
6,00,498 |
10% |
6,12,293 |
2% |
Sources: Annual Financial Statement, Maharashtra Budget 2024-25; PRS.
Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of salaries, pensions, and interest. A larger proportion of budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay. In 2024-25, Maharashtra is estimated to spend Rs 2,75,615 crore on committed expenditure, which is 55% of its estimated revenue receipts. This comprises spending on salaries (32% of revenue receipts), pension (12%), and interest payments (11%). In 2023-24, expenditure towards pensions is estimated to be 16% lower than the budget estimate. In 2022-23, as per actuals, 52% of revenue receipts were spent towards committed expenditure.
Table 3 : Committed Expenditure in 2024-25 (in Rs crore)
Committed Expenditure |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
Salaries |
1,24,325 |
1,44,771 |
1,42,718 |
-1% |
1,59,071 |
11% |
Pension |
43,109 |
54,737 |
45,908 |
-16% |
59,817 |
30% |
Interest payment |
41,689 |
50,648 |
48,578 |
-4% |
56,727 |
17% |
Total Committed Expenditure |
2,09,123 |
2,50,156 |
2,37,204 |
-5% |
2,75,615 |
16% |
Sources: Annual Financial Statement, Maharashtra Budget 2024-25; PRS.
Sector-wise expenditure: The sectors listed below account for 60% of the total expenditure on sectors by the state in 2024-25. A comparison of Maharashtra’s expenditure on key sectors with that by other states is shown in Annexure 1.
Table 4 : Sector-wise expenditure under Maharashtra Budget 2024-25 (in Rs crore)
Sector |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
Budget Provisions |
Education, Sports, Arts, and Culture |
81,560 |
89,705 |
97,200 |
98,985 |
2% |
Rs 11,117 crore has been allocated for general education. |
Transport |
37,775 |
35,077 |
41,041 |
42,415 |
3% |
Rs 37,898 crore has been allocated for roads and bridges. |
Agriculture and Allied Activities |
34,079 |
32,077 |
42,016 |
35,859 |
-15% |
Rs 12,354 crore has been allocated for crop husbandry. |
Social Welfare and Nutrition |
20,677 |
20,050 |
28,364 |
32,754 |
15% |
Rs 15,268 crore has been allocated for social security and welfare. |
Police |
20,072 |
26,906 |
24,050 |
29,338 |
22% |
Rs 28,391 crore has been allocated towards revenue expenditure for police. |
Health and Family Welfare |
20,387 |
25,015 |
30,630 |
27,748 |
-9% |
Rs 13,660 crore has been allocated towards medical and public health. |
Welfare of SC, ST, OBC, and Minorities |
20,025 |
24,787 |
28,879 |
26,967 |
-7% |
Rs 4,593 crore has been allocated towards the welfare of Scheduled Castes, Scheduled Tribes, Other Backward Classes and Minorities. |
Rural Development |
16,708 |
25,308 |
25,424 |
23,782 |
-6% |
Rs 6,474 crore has been allocated towards other rural development programmes. |
Urban Development |
18,349 |
20,761 |
31,082 |
22,759 |
-27% |
Rs 16,505 crore has been allocated towards revenue expenditure under urban development. |
Irrigation and Flood Control |
13,431 |
19,958 |
18,907 |
21,428 |
13% |
Rs 881 crore has been allocated towards capital outlay for minor irrigation. |
% of total expenditure on all sectors |
60% |
59% |
62% |
60% |
|
|
Sources: Annual Financial Statement, Maharashtra Budget 2024-25; PRS.
Receipts in 2024-25
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Total revenue receipts for 2024-25 are estimated to be Rs 4,99,463 crore, an increase of 3% over the revised estimate of 2023-24. Of this, Rs 3,69,694 crore (74%) will be raised by the state through its own resources, and Rs 1,29,769 crore (26%) will come from the centre. Resources from the centre will be in the form of state’s share in central taxes (15% of revenue receipts) and grants (11% of revenue receipts).
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Devolution: In 2024-25, state’s share in central taxes is estimated at Rs 77,054 crore, an increase of 10% over the revised estimate of 2023-24.
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Grants from the centre in 2024-25 are estimated at Rs 52,715 crore, a decrease of 19% from the revised estimates for 2023-24.
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State’s own tax revenue: Maharashtra’s total own tax revenue is estimated to be Rs 3,42,919 crore in 2024-25, an increase of 5% over the revised estimate of 2023-24. Own tax revenue as a percentage of GSDP is estimated at 8% in 2024-25, same as the revised estimates for 2023-24 (8.1%). As per the actual figures for 2022-23, own tax revenue as a percentage of GSDP was 7.6%.
Table 5 : Break-up of the state government’s receipts (in Rs crore)
Items |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 2023-24 to RE 2023-24 |
2024-25 Budgeted |
% change from RE 2023-24 to BE 2024-25 |
State's Own Tax |
2,77,486 |
2,98,181 |
3,26,281 |
9% |
3,42,919 |
5% |
State's Own Non-Tax |
16,776 |
24,170 |
24,620 |
2% |
26,775 |
9% |
Share in Central Taxes |
60,002 |
64,525 |
69,771 |
8% |
77,054 |
10% |
Grants-in-aid from Centre |
51,414 |
62,647 |
65,444 |
4% |
52,715 |
-19% |
Revenue Receipts |
4,05,678 |
4,49,523 |
4,86,116 |
8% |
4,99,463 |
3% |
Non-debt Capital Receipts |
643 |
2,427 |
2,427 |
0% |
2,475 |
2% |
Net Receipts |
4,06,321 |
4,51,949 |
4,88,542 |
8.1% |
5,01,938 |
3% |
BE is Budget Estimates; RE is Revised Estimates.
Sources: Annual Financial Statement, Maharashtra Budget 2024-25; PRS.
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GSDP growth witnesses a decline In 2024-25, Maharashtra has projected a GSDP growth of 5.5% (at current prices). This is accompanied by a 3% growth in revenue receipts and expenditure. The national GDP (nominal) is estimated to grow by 10.5%. In 2023-24, the state is estimated to grow by 11%. |
Table 6 : Major sources of state’s own-tax revenue (in Rs crore)
Head |
2022-23 Actuals |
2023-24 Budgeted |
2023-24 Revised |
% change from BE 23-24 to RE 23-24 |
2024-25 Budgeted |
% change from RE 23-24 to BE 24-25 |
State GST |
1,21,256 |
1,36,041 |
1,44,791 |
6% |
1,55,756 |
8% |
Sales Tax/ VAT |
54,568 |
56,200 |
62,050 |
10% |
62,500 |
1% |
Stamps Duty and Registration Fees |
45,286 |
45,000 |
51,500 |
14% |
55,000 |
7% |
State Excise |
21,507 |
25,200 |
29,000 |
15% |
30,500 |
5% |
Taxes on Vehicles |
11,740 |
12,500 |
15,000 |
20% |
14,875 |
-1% |
Taxes and Duties on Electricity |
14,721 |
12,000 |
14,000 |
17% |
14,180 |
1% |
Land Revenue |
2,431 |
4,500 |
2,500 |
-44% |
3,000 |
20% |
Sources: Annual Financial Statement, Revenue Budget, and Maharashtra Budget 2024-25; PRS.
Deficits, Debt, and FRBM Targets for 2024-25
The Maharashtra Fiscal Responsibility and Budgetary Management Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit, and fiscal deficit of the state government.
Revenue deficit: It is the difference of revenue expenditure and revenue receipts. A revenue deficit implies that the government needs to borrow to finance those expenses which do not increase its assets or reduces its liabilities. The budget estimates a revenue deficit of Rs 20,051 crore (or 0.5% of the GSDP) in 2024-25.
Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government and leads to an increase in total liabilities. In 2024-25, the fiscal deficit is estimated to be 2.6% of GSDP. For 2024-25, the central government has permitted fiscal deficit of up to 3% of GSDP to states, and an additional 0.5% of GSDP will be available only upon carrying out certain power sector reforms. |
Increasing revenue deficit Finance Commissions over the years have recommended that states eliminate their revenue deficit. Maharashtra’s FRBM Act, 2005 also requires the elimination of revenue deficit. In 2024-25, Maharashtra has estimated a revenue deficit of Rs 20,051 crore (0.5% of GSDP). This is higher than the revenue deficit incurred in 2022-23, i.e., Rs 1,936 crore (0.1% of GSDP). This increase could be attributed to the introduction of new cash transfer schemes. Revenue deficit is also higher in 2024-25 on account of nominal GSDP growing at a slower pace (8%) than revenue receipts (11%) and revenue expenditure (13%) over 2022-23. Revenue deficit is estimated to be eliminated by 2026-27. |
As per the revised estimates, in 2023-24, the fiscal deficit of the state is expected to be 2.8% of GSDP. This is higher than the budget estimate (2.5%). Fiscal deficit is projected to be lowered to 2.3% of GSDP by 2026-27.
Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings at the end of a financial year, it also includes any liabilities on public account. At the end of 2024-25, the outstanding liabilities are estimated to be 18.4% of GSDP, higher than the revised estimate for 2023-24 (17.6% of GSDP). The outstanding liabilities increased in 2020-21 (19.9% of GSDP), and have moderated thereafter.
Figure 2 : Revenue and Fiscal Balance (% of GSDP) Note: *Figures for 2025-26 and 2026-27 are projections; RE is Revised Estimates; BE is budget estimates. |
Figure 3 : Outstanding Liabilities (as % of GSDP) Note: *Figures for 2025-26 and 2026-27 are projections; RE is Revised Estimates; BE is budget estimates. |
Outstanding Government Guarantees: Outstanding liabilities of states do not include a few other liabilities that are contingent in nature, which states may have to honour in certain cases. State governments guarantee the borrowings of State Public Sector Enterprises (SPSEs) from financial institutions. As of March 31, 2024, the state’s outstanding guarantee is estimated to be Rs 77,924 crore, which is 1.9% of Maharashtra’s GSDP. At the end of 2022-23, the state’s outstanding guarantee was Rs 66,726 crore (1.8% of GSDP).
Annexure 1: Comparison of states’ expenditure on key sectors
The graphs below compare Maharashtra’s expenditure in 2024-25 on six key sectors as a proportion of its total expenditure on all sectors. The average for a sector indicates the average expenditure in that sector by 31 states (including Maharashtra) as per their budget estimates of 2023-24. [1]
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Education: Maharashtra has allocated 16.4% of its expenditure on education in 2024-25. This is higher than the average allocation for education by states in 2023-24 (14.7%).
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Health: Maharashtra has allocated 4.6% of its total expenditure towards health, which is lower than the average allocation for health by states (6.2%).
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Rural development: Maharashtra has allocated 3.9% of its expenditure on rural development. This is lower than the average allocation for rural development by states (5%).
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Urban development: Maharashtra has allocated 3.8% of its expenditure towards urban development. This is higher than the average allocation towards urban development by states (3.4%).
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Agriculture: Maharashtra has allocated 5.9% of its total expenditure towards agriculture, which is the same as the average expenditure on agriculture by states.
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Energy: Maharashtra has allocated 2.3% of its total expenditure towards energy, which is lower than the average allocation by states (4.7%).
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Note: 2022-23, 2023-24 (BE), 2023-24 (RE), and 2024-25 (BE) figures are for Maharashtra
Sources: Annual Financial Statement, Maharashtra Budget 2024-25; various state budgets; PRS.
[1] The 31 states include the Union Territories of Delhi, Jammu and Kashmir, and Puducherry .
Annexure 2: Comparison of 2022-23 Budget Estimates and Actuals
The following tables compare the actuals of 2022-23 with budget estimates for that year.
Table 7 : Overview of Receipts and Expenditure (in Rs crore)
Particular |
2022-23 BE |
2022-23 Actuals |
% change from BE to Actuals |
Net Receipts (1+2) |
4,05,806 |
4,06,321 |
0.1% |
1. Revenue Receipts (a+b+c+d) |
4,03,427 |
4,05,678 |
1% |
a. Own Tax Revenue |
2,56,526 |
2,77,486 |
8% |
b. Own Non-Tax Revenue |
27,128 |
16,776 |
-38% |
c. Share in central taxes |
51,588 |
60,002 |
16% |
d. Grants-in-aid from the Centre |
68,186 |
51,414 |
-25% |
Of which GST compensation grants |
9,725 |
0 |
0% |
2. Non-Debt Capital Receipts |
2,379 |
643 |
-73% |
3. Borrowings |
1,27,938 |
94,702 |
-26% |
Of which GST compensation loan |
0 |
0 |
0% |
Net Expenditure (4+5+6) |
4,95,405 |
4,73,922 |
-4% |
4. Revenue Expenditure |
4,27,780 |
4,07,614 |
-5% |
5. Capital Outlay |
65,210 |
61,644 |
-5% |
6. Loans and Advances |
2,414 |
4,664 |
93% |
7. Debt Repayment |
53,003 |
44,795 |
-15% |
Revenue Deficit |
24,353 |
1,936 |
-92% |
Revenue Deficit (as % of GSDP) |
0.7% |
0.1% |
|
Fiscal Deficit |
89,598 |
67,602 |
-25% |
Fiscal Deficit (as % of GSDP) |
2.5% |
1.9% |
|
Source: Maharashtra Budget Documents of various years; PRS.
Table 8 : Key Components of State's Own Tax Revenue
Tax Source/Head |
2022-23 BE |
2022-23 Actuals |
% change from BE to Actuals |
Land Revenue |
4,000 |
2,431 |
-39% |
State Excise |
22,000 |
21,507 |
-2% |
State GST |
1,19,900 |
1,21,256 |
1% |
Sales Tax/ VAT |
50,200 |
54,568 |
9% |
Taxes on Vehicles |
10,500 |
11,740 |
12% |
Taxes and Duties on Electricity |
11,444 |
14,721 |
29% |
Stamps Duty and Registration Fees |
32,000 |
45,286 |
42% |
Source: Maharashtra Budget Documents of various years; PRS.
Table 9 : Allocation towards Key Sectors
Sector |
2022-23 BE |
2022-23 Actuals |
% change from BE to Actuals |
Housing |
11,898 |
4,097 |
-66% |
Water Supply and Sanitation |
13,785 |
5,344 |
-61% |
Irrigation and Flood Control |
18,727 |
13,431 |
-28% |
Rural Development |
22,844 |
16,708 |
-27% |
Police |
24,663 |
20,072 |
-19% |
Welfare of SC, ST, OBC, and Minorities |
22,984 |
20,025 |
-13% |
Health and Family Welfare |
22,536 |
20,387 |
-10% |
Urban Development |
18,347 |
18,349 |
0% |
Education, Sports, Arts, and Culture |
80,437 |
81,560 |
1% |
Agriculture and Allied Activities |
29,393 |
34,079 |
16% |
Transport |
30,913 |
37,775 |
22% |
of which Roads and Bridges |
27,902 |
36,053 |
29% |
Social Welfare and Nutrition |
16,617 |
20,677 |
24% |
Energy |
11,333 |
14,377 |
27% |
Source: Maharashtra Budget Documents of various years; PRS.
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