Maharashtra State Budget 2021-22 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Maharashtra FY 2021-22
Maharashtra State Budget 2021-22 Budget at a Glance
Total Receipts
Rs 3.45 lakh crore
+30.2%
Total Expenditure
Rs 4.25 lakh crore
+18.7%
Fiscal Deficit
2.3%
Rs 72,000 crore
Capital Expenditure
Rs 60,000 crore
+25.0%
Tax Revenue
Rs 2.25 lakh crore
+33.9%
Interest Payments
Rs 45,000 crore
11% of expenditure
Maharashtra Revenue Receipts 2021-22
Own tax revenue vs non-tax revenue breakdown
Maharashtra Expenditure Breakdown 2021-22
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP — Maharashtra 2021-22
The fiscal deficit for Maharashtra in 2021-22 is 2.3% of GSDP (Rs 72,000 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 45,000 crore consume 10.6% of total expenditure.
Maharashtra State Budget 2021-22 — Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 4 lakh crore | 100% |
| 1. Revenue Receipts | Rs 3.45 lakh crore | 86.3% |
| a. Own Tax Revenue | Rs 2.25 lakh crore | 56.3% |
| b. Non-Tax Revenue | Rs 1.2 lakh crore | 30.0% |
| B. Total Expenditure | Rs 4.25 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 3.65 lakh crore | 85.9% |
| 2. Capital Expenditure | Rs 60,000 crore | 14.1% |
| of which: Interest Payments | Rs 45,000 crore | 10.6% |
| C. Fiscal Deficit | Rs 72,000 crore | 2.3% of GSDP |
Source: Maharashtra State Budget Documents via PRS India. All figures in Indian Rupees.
Maharashtra Budget 2021-22 Analysis & Highlights
Key Highlights
- Maharashtra's total expenditure in 2021-22 reached approximately Rs 4,25,000 crore, reflecting a strong post-pandemic recovery after the devastating second COVID wave of April-June 2021.
- Revenue receipts rebounded to Rs 3,45,000 crore, growing 30% year-on-year as GST collections surged and the economy recovered from the pandemic contraction.
- Tax revenue at Rs 2,25,000 crore recorded 34% growth, with SGST collections benefiting from inflation-driven nominal GDP expansion and improved compliance through e-invoicing.
- The political upheaval of June 2022, when Eknath Shinde led a Sena rebel faction to split the party and form government with BJP, occurred just days before the fiscal year ended.
- Revenue deficit narrowed to Rs 20,000 crore as buoyant tax revenues outpaced expenditure growth, signaling fiscal recovery from the pandemic deterioration.
- Fiscal deficit at Rs 72,000 crore or 2.3% of GSDP remained within FRBM limits despite pandemic-related expenditure overhang and infrastructure spending acceleration.
- Capital expenditure of Rs 60,000 crore reached record levels, with Mumbai Metro Line 3 nearing completion and the Samruddhi Mahamarg partially opening.
- Interest payments at Rs 45,000 crore consumed 13% of revenue receipts, a manageable ratio despite the pandemic-era debt accumulation.
- Outstanding debt crossed Rs 6,40,000 crore at a debt-to-GSDP ratio of 20.3%, elevated from the pre-pandemic level of 17.8% but beginning to stabilize.
- The second COVID wave overwhelmed Maharashtra's healthcare system in April-May 2021, with emergency health spending of Rs 8,000 crore on oxygen supply, ICU expansion, and vaccination.
- Stamp duty collections surged to Rs 35,000 crore following the temporary stamp duty cut in 2020-21 and a massive real estate demand surge in Mumbai and Pune.
- GST compensation from the Centre of Rs 12,000 crore helped bridge the revenue gap, though the compensation mechanism was set to expire in June 2022.
- Mumbai Trans-Harbour Link construction accelerated with Rs 5,000 crore in spending, the 22-km sea bridge nearing structural completion.
- Industrial investment commitments of Rs 2,50,000 crore were attracted through Magnetic Maharashtra events, with Foxconn, Vedanta, and Tata-Airbus among major investment announcements.
Compare Maharashtra Budget — Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|---|---|---|---|---|
| Total Expenditure | — | — | — | Rs 3.58 lakh crore | Rs 4.25 lakh crore |
| Revenue Receipts | — | — | — | Rs 2.65 lakh crore | Rs 3.45 lakh crore |
| Capital Expenditure | — | — | — | Rs 48,000 crore | Rs 60,000 crore |
| Fiscal Deficit (% GSDP) | — | — | — | 3.2% | 2.3% |
| Own Tax Revenue | — | — | — | Rs 1.68 lakh crore | Rs 2.25 lakh crore |
Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Maharashtra State Budget 2021-22
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.
Explore More
Compare Maharashtra with other states
Side-by-side comparison of fiscal metrics across Indian states