Maharashtra's Financial Boost: Rs 98,306 Crore Tax Devolution in Union Budget 2026-27
Maharashtra Chief Minister Devendra Fadnavis has announced that the state is set to receive a significant financial allocation from the central government under the Union Budget 2026-27. According to Fadnavis, Maharashtra's share in the central tax devolution has increased to 6.44 per cent, amounting to Rs 98,306 crore. This marks a substantial rise compared to previous years, reflecting the state's growing economic importance.
Key Infrastructure Projects and Growth Initiatives
Fadnavis emphasized that the budget lays a solid foundation for sustainable growth through planned urbanization, industry encouragement, and robust measures for investment and employment generation. He highlighted several key infrastructure projects that are expected to drive economic development:
- Mumbai–Pune and Pune–Hyderabad high-speed corridors: These projects are anticipated to significantly enhance GDP growth by improving connectivity and boosting trade.
- Growth Hubs: Each growth hub, including the Mumbai Metropolitan Region (MMR), Pune Metropolitan Region, and Nagpur Metropolitan Growth Hub, will receive ₹5,000 crore over five years to foster regional development.
- Urban Transport and Metro Projects: Allocations include Rs 1,702 crore for Mumbai Metro, Rs 517 crore for Pune Metro, and Rs 462 crore for Mumbai Urban Transport Project (MUTP) Phase III.
Social Sector Initiatives and Women Empowerment
The budget also includes several social-sector initiatives aimed at improving public welfare and empowering women. Fadnavis noted:
- Proposed women's hostels in every district for girls in higher education.
- Trauma centres in every district hospital to enhance healthcare services.
- A women-centric approach, with programs like Lakhpati Didi and support for women entrepreneurship to promote economic self-reliance.
Detailed Budget Allocations for Maharashtra
Beyond the tax devolution, the Union Budget 2026-27 outlines specific allocations for various sectors in Maharashtra:
- Rural Road Development: Rs 378 crore
- Economic Cluster Initiatives: Rs 283 crore
- Maharashtra Tertiary Care Medical Education Schemes: Rs 385 crore
- Irrigation Works: Rs 207 crore
- Human Development Programs: Rs 313 crore for applied knowledge and skill development
- District Institutional Planning: Rs 240 crore
- Mumbai-Ahmedabad High-Speed Corridor: Rs 6,103 crore
- MMR Region Green Mobility: Rs 155 crore
- Mahamarg Project: Rs 680 crore
Fadnavis described the budget as a "strong and decisive step towards a Viksit Bharat", countering opposition criticism by pointing out that Maharashtra's financial component is expected to increase by approximately Rs 20,000 crore compared to the previous year. He stressed that integrated development across industries, agriculture, and technology will create new job opportunities and drive economic growth.
