Mumbai, March 10 The Maharashtra government’s capital expenditure on development works especially for asset creation is estimated to reduce to 11 per cent of gross state domestic product (GSDP) at Rs 93,165.52 crore in 2025-26 against 13 per cent at Rs 1,09,031.48 crore as per the revised estimate for 2024-25.
The fall in capital expenditure is despite the government proposing a slew of development schemes in various sectors. However, as per the budget document presented along with the annual budget for 2025-26, the capital expenditure on development works is set to decrease by 2 per cent.
The government’s move is important especially when it focuses on prioritising development works by increasing capital expenditure. The central government has increased capital expenditure on a large scale.
Prime Minister Narendra Modi had earlier suggested that states should also focus on increasing assets by increasing capital expenditure. The finance department sources admitted that the reduction in capital expenditure will affect development works.
“The government has to accept the option of privatisation in the infrastructure sector as it does not have sufficient funds for capital expenditure. Besides, it is also carrying out various development works through public-private partnerships.
In 2024-25, against the provision of Rs 92779 crore for capital expenditure, the government has spent Rs 1,09,031.48 crore as per the revised budget. The government has given priority for welfare and development works ahead of the assembly election held last year,” sources added.
Even though the government had launched a slew of development works, it could not settle the payment to contractors worth Rs 89,000 crore. However, the sources said that the government has started clearing the pending dues of contractors by launching a special plan and the allocation of funds in phases, said the sources.
Meanwhile, the deputy chief minister has estimated revenue expenditure of Rs 6,06,854.68 crore as per the budget estimate for 2025-26 against the revised estimate of Rs 5,62,998.52 crore for 2024-25.
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