Maharashtra adds 51,700cr guarantees, off budget debt 1.81L/cr, CAG warns
Maharashtra's off-budget debt has soared to ₹1.81 lakh crore, and the CAG is worried about how fast it's rising.
The state just added loan guarantees worth ₹51,700 crore for FY 2025-26, pushing the total up from last year's ₹1.44 lakh crore.
These guarantees now make up over 16% of Maharashtra's total debt of ₹11.03 lakh crore.
Maharashtra debt to GSDP exceeds 25%
Big chunks of this money are going to major infrastructure projects like roads in Virar-Alibag and Mumbai, plus land development in Nagpur.
Some loans also went to cooperative sugar factories linked to politicians, which has pushed Maharashtra's debt-to-GSDP ratio above 25%, well past the legal limit of 25%.
The CAG warns that relying too much on these borrowings could seriously hurt the state's financial health if things don't change soon.