Maharashtra Debt Row: NCP(SP) Alleges Rs 10 Lakh Crore Public Debt, Dues to Small Contractors
Maharashtra Debt Row: NCP(SP) Alleges Rs 10 Lakh Crore Public Debt

A fresh political controversy erupted in Maharashtra on Wednesday as the Nationalist Congress Party (Sharad Pawar faction) accused the BJP-led state government of mismanaging public finances and delaying payments to small contractors. NCP(SP) spokesperson Mahesh Tapase alleged that the state's public debt has exceeded Rs 10 lakh crore, while dues for completed government projects remain unpaid across multiple departments, pushing nearly three lakh contractors and developers into financial distress.

Opposition's Allegations and Demands

Tapase claimed that associations representing small contractors in Maharashtra have written to Union Finance Minister Nirmala Sitharaman seeking intervention over unpaid government bills. Copies of the representation were also sent to Chief Minister Devendra Fadnavis and the Governor of the Reserve Bank of India. He criticized the government for advertising Maharashtra as an investment destination and a promoter of small businesses while failing to pay its own dues. "If bills of small contractors are pending for years, then where exactly is the money going?" Tapase questioned.

He further alleged that the state is "heading towards a financial catastrophe" as public debt rises and questioned the functioning of the finance department. Tapase demanded that Chief Minister Fadnavis publicly disclose the exact amount of arrears pending as of March 31, 2026, across all government departments and contracts.

Wide Pickt banner — collaborative shopping lists app for Telegram, phone mockup with grocery list

Government's Stance and Context

The BJP-led Mahayuti government has consistently maintained that Maharashtra remains among the country's leading investment destinations, with infrastructure spending and capital expenditure central to its growth strategy. State governments routinely borrow through market loans and other instruments to finance projects, though concerns over debt sustainability and payment delays periodically surface in political and budget debates.

Delayed government payments can particularly affect small contractors and MSMEs, many of whom depend on timely bill clearances to service bank loans, pay workers, and sustain cash flow. Industry bodies have often argued that prolonged payment cycles can lead to project slowdowns and financial stress.

Response from the Government

The state government had not immediately responded to the specific allegations regarding pending dues or the demand for a consolidated disclosure of arrears across departments. The claims made by NCP(SP) regarding the extent of pending payments and the number of affected contractors remain part of the opposition party's allegations.

Pickt after-article banner — collaborative shopping lists app with family illustration