Maha govt presents Rs 7.69 lakh crore budget, announces farm loan waiver up to Rs 2 lakh

The Maharashtra government has presented a ₹7.69 lakh crore budget for the financial year 2026–27, announcing a major farm loan waiver of up to ₹2 lakh per farmer as a key relief measure for the agricultural sector. The budget was presented in the state Assembly by Chief Minister Devendra Fadnavis, who is also holding the finance portfolio.

The farm debt relief scheme, titled the Punyashlok Ahilyadevi Holkar Shetkari Karjamafi Yojana, will waive crop loans up to ₹2 lakh for eligible farmers whose loans were outstanding as of September 30, 2025. The move aims to reduce financial distress among farmers and strengthen the rural economy.

Alongside the waiver, the government announced incentives of ₹50,000 for farmers who regularly repay their loans, encouraging responsible borrowing and repayment. Initial estimates suggest that data for around 28–30 lakh farm loan accounts have been collected from banks, though the final number of beneficiaries will be determined by a government-appointed committee.

The total budget outlay of ₹7,69,467 crore reflects the state’s emphasis on welfare spending, agricultural support and infrastructure development. Revenue receipts are projected at ₹6,16,099 crore against revenue expenditure of ₹6,56,651 crore, resulting in a revenue deficit of ₹40,552 crore. The fiscal deficit is estimated at ₹1,50,491 crore.

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Apart from farm relief, the budget also focuses on large infrastructure projects, including expansion of metro rail networks and expressways, while continuing key welfare schemes such as financial assistance programmes and free electricity for farmers.

The government said the budget aligns with its long-term vision of building a “Viksit Maharashtra 2047”, with agriculture, sustainability and inclusive development forming the core pillars of the state’s growth strategy.

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