Mumbai, Mar 11 (PTI) Financial mismanagement by the Mahayuti government and the state's escalating debt burden resulted in every citizen now carrying a debt of Rs 82,000, Leader of Opposition in legislative council Ambadas Danve said on Tuesday.

Opposition leaders slammed the government over Maharashtra's financial situation in the upper house of the state legislature, a day after finance minister Ajit Pawar presented Budget 2025-26.

During the debate, Danve said Maharashtra pays Rs 65,000 crore annually in interest payments alone, leaving the state’s citizens grappling with a debt of Rs 82,000 each, raising concerns about the government's management of public finances.

He said the state government's move to slash capital expenditure (capex) by 2 per cent would affect long-term growth.

"In the current financial year (2024-25), 13% of the budget was allocated to capital expenditure. However, in the 2025-26 Budget, this has been reduced to 11 per cent, which shows the government's approach towards long-term projects," the Shiv Sena (UBT) leader added.

Danve said that only 44 paise out of every rupee spent by the government goes toward public welfare, with the remaining funds primarily used to service debt obligations.

Maharashtra's budget for the current fiscal year stands at Rs 7 lakh crore, with a revenue deficit of Rs 45,000 crore and a fiscal deficit of Rs 1.36 lakh crore.

Danve said the Union government’s decision to cut Maharashtra’s GST rebate has further strained the state's revenue collection.

"The Union government is allocating more funds to Uttar Pradesh and Bihar, depriving Maharashtra of its expected share despite its contribution towards GST collections," he said.

Danve further said Maharashtra has fallen to the fifth place in GDP growth rankings, while states like Telangana and Karnataka have reported higher growth.

Maharashtra government had tabled supplementary demands of Rs 6,486 crore outside the budget expenditure on the first day of the budget session of the state assembly on March 3. PTI ND NSK

Fiscal burden per citizen rises as state debt servicing and reduced capex constrain welfare spending. Opposition critics assert that Maharashtra's growing debt and annual interest obligations have diverted substantial revenue to debt servicing-leaving only 44 paise of every rupee for public welfare-and note a reduction in capital expenditure from 13% to 11% of the budget, a revenue deficit and a fiscal deficit, supplementary demands outside the budget, and reduced GST rebate allocations as key contributors to fiscal strain.