Maharashtra off-budget guarantees rise to ₹1.81 lakh crore by March 31, 2026
AI Market Summary
Maharashtra's off-budget, government-guaranteed liabilities rose to ₹1.81 lakh crore, with auditors warning this obscures the true deficit and strains fiscal sustainability as debt/GSDP breaches the FRBM 25% ceiling. The disclosure highlights rising sub-sovereign credit risk and potential tightening in state-linked financing channels. Two politically controlled cooperative sugar mills benefited from guaranteed loans, adding governance and refinancing risk to the local sugar value chain.
Impact level
● Medium
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Maharashtra’s off-budget guaranteed liabilities totalled ₹1.81 lakh crore as of March 31, 2026, accounting for 16.4% of its estimated debt stock. The Comptroller and Auditor General criticised reliance on borrowings outside the budget, saying it understates the state’s true debt and fiscal deficit and reduces transparency. Two cooperative sugar factories controlled by politicians received government-backed loans totalling ₹139.88 crore. The state’s debt-to-GSDP ratio has moved beyond the FRBM ceiling of 25%, raising concerns over fiscal sustainability.
