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Maharashtra State Budget 2019-20 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Maharashtra FY 2019-20

Maharashtra State Budget 2019-20 Budget at a Glance

Total Receipts

Rs 2.98 lakh crore

+2.8%

Total Expenditure

Rs 3.72 lakh crore

+4.6%

Fiscal Deficit

2.1%

Rs 60,000 crore

Capital Expenditure

Rs 52,000 crore

-5.5%

Tax Revenue

Rs 1.95 lakh crore

+2.6%

Interest Payments

Rs 40,000 crore

11% of expenditure

Maharashtra Revenue Receipts 2019-20

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1.95 lakh crore (65.4%)
Non-Tax Revenue
Rs 1.03 lakh crore (34.6%)

Maharashtra Expenditure Breakdown 2019-20

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 86.0%
Capital Expenditure 14.0%

Fiscal Deficit as % of GSDP — Maharashtra 2019-20

The fiscal deficit for Maharashtra in 2019-20 is 2.1% of GSDP (Rs 60,000 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Maharashtra is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 40,000 crore consume 10.8% of total expenditure.

Maharashtra State Budget 2019-20 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 3.48 lakh crore100%
1. Revenue ReceiptsRs 2.98 lakh crore85.6%
a. Own Tax RevenueRs 1.95 lakh crore56.0%
b. Non-Tax RevenueRs 1.03 lakh crore29.6%
B. Total ExpenditureRs 3.72 lakh crore100%
1. Revenue ExpenditureRs 3.2 lakh crore86.0%
2. Capital ExpenditureRs 52,000 crore14.0%
of which: Interest PaymentsRs 40,000 crore10.8%
C. Fiscal DeficitRs 60,000 crore2.1% of GSDP

Source: Maharashtra State Budget Documents via PRS India. All figures in Indian Rupees.

Maharashtra Budget 2019-20 Analysis & Highlights

Key Highlights

  • Maharashtra's total expenditure in 2019-20 reached approximately Rs 3,72,000 crore, a year disrupted by the COVID-19 lockdown in March 2020 and a dramatic mid-year political transition.
  • Revenue receipts of Rs 2,98,000 crore grew just 1.4% year-on-year as GST collections weakened from the pre-pandemic economic slowdown and the March 2020 lockdown eliminated final quarter revenues.
  • Tax revenue at Rs 1,95,000 crore was virtually flat compared to the previous year, with SGST collections falling short of targets and the GST compensation mechanism becoming critical fiscal support.
  • The Maha Vikas Aghadi coalition of Shiv Sena, NCP, and Congress assumed power in November 2019 under Chief Minister Uddhav Thackeray after Devendra Fadnavis's brief second government lasted just 80 hours.
  • Revenue deficit widened sharply to Rs 22,000 crore as the economic slowdown and political transition disrupted revenue mobilization while expenditure commitments continued.
  • Fiscal deficit at Rs 60,000 crore or 2.1% of GSDP breached the state's own conservative target, though it remained within the FRBM ceiling of 3%.
  • Capital expenditure of Rs 52,000 crore sustained infrastructure programs including ongoing Mumbai Metro construction and Samruddhi Mahamarg progress despite the political upheaval.
  • Interest payments at Rs 40,000 crore consumed 13.4% of revenue receipts, rising in absolute terms with the growing debt stock.
  • The COVID-19 pandemic struck Maharashtra on March 9, 2020 with India's first case cluster in Pune, triggering a statewide lockdown from March 22 that froze all economic activity for the final 10 days of the fiscal year.
  • Outstanding debt rose to Rs 5,30,000 crore at a debt-to-GSDP ratio of 17.8%, as borrowings increased to cover the revenue shortfall.
  • Mumbai Metro Line 3 tunneling reached 75% completion, with Rs 8,000 crore spent on the underground corridor during the year.
  • Agricultural spending of Rs 18,000 crore included the Mahatma Jyotirao Phule loan waiver scheme announced by the new MVA government for loans up to Rs 2 lakh.
  • Market borrowings jumped to Rs 43,000 crore as the state front-loaded borrowing to manage cash flow pressures from the economic slowdown.
  • Health infrastructure received Rs 14,000 crore, with pandemic preparedness investments beginning in the final month including PPE procurement and hospital bed expansion.

Compare Maharashtra Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2015-162016-172017-182018-192019-20
Total ExpenditureRs 3.56 lakh croreRs 3.72 lakh crore
Revenue ReceiptsRs 2.9 lakh croreRs 2.98 lakh crore
Capital ExpenditureRs 55,000 croreRs 52,000 crore
Fiscal Deficit (% GSDP)1.8%2.1%
Own Tax RevenueRs 1.9 lakh croreRs 1.95 lakh crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Maharashtra State Budget 2019-20

The Maharashtra state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Maharashtra Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Maharashtra with other states

Side-by-side comparison of fiscal metrics across Indian states