The Comptroller and Auditor General (CAG) of India has expressed worries about Maharashtra’s fiscal transparency, highlighting that the state’s off-budget borrowings escalated to Rs 28,325 crore by the conclusion of the 2024–25 fiscal year.
As per the State Finances Audit Report, these significant liabilities were not included in the state’s official budget documents, leading to an understatement of its total debt burden and bypassing legislative scrutiny. This revelation could impact the ruling alliance’s political standing.
Most of the fiscal period scrutinized fell under Eknath Shinde’s chief ministership, with Devendra Fadnavis from the Bharatiya Janata Party (BJP) serving as the Finance Minister. After the assembly elections in November, Fadnavis assumed the role of Chief Minister, while Shinde became the Deputy Chief Minister.
The Maharashtra State Road Development Corporation (MSRDC) was identified by the CAG as the primary entity behind these borrowings. Supported by state government guarantees, the MSRDC secured substantial loans from the Housing and Urban Development Corporation Limited (HUDCO) over the past three fiscal years: 2022–23: Rs 2,500 crore, 2023–24: Rs 7,700 crore, and 2024–25: Rs 18,440 crore.
