Mumbai: The Maharashtra government has initiated a 5-30% budget cut on account of rising fiscal deficit, expenses towards implementation of the Ladki Bahin scheme and a reduction in revenue receipt for the fiscal year 2025-26.
The cut is highest, at 30%, on revenue and capital expenditure – including on construction projects, contractual services, investment, foreign tours, and grants of capital, according to the government resolution (GR) issued on Thursday.
A 20% is effective on expenses towards electricity and water bills, overtime allowance, office expenditure, rent taxes, arms and ammunition, vehicular fuel and professional services, while a 10% cut is effective on wages, and 5% on salaries, effective till the end of the fiscal year, the GR said.
Repayment of loans, interests, district planning funds, MLA funds, and repayment of long term loans taken from the central government have been exempted from the budget cut.
Officials said the gap between revenue and expenditure in 2025-26 is likely to widen due to the estimated fiscal deficit of ₹1.36 lakh crore, supplementary demands worth ₹1.33 lakh crore presented in the monsoon and winter sessions of the state legislature, and a slight drop in revenue receipt compared the corresponding period in the previous year.
Massive expenses on populist schemes like Ladki Bahin had compelled the government to initiate the budget cut, officials said. While cuts of around 15% were routine for all departments every year following a review of revenue receipts against budgetary allocations, such cuts were indicative of fiscal indiscipline, the officials noted.
{{/usCountry}}Massive expenses on populist schemes like Ladki Bahin had compelled the government to initiate the budget cut, officials said. While cuts of around 15% were routine for all departments every year following a review of revenue receipts against budgetary allocations, such cuts were indicative of fiscal indiscipline, the officials noted.
{{/usCountry}}Revenue generation from taxes till December-end in 2025-26 was 66.24% – or ₹3.71 lakh crore against a total estimated revenue of ₹ 5.61 lakh crore - compared to 67.19% till December 2024, the officials said.
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