Over the past decade, Maharashtra’s expenditure on pensions and retirement benefits has surged by 303 per cent—from Rs 18,643 crore in 2015-16 to Rs 75,137 crore (budget estimate) in 2025-26. Between 2018 and 2026, the state’s spending on social security and other benefits for retired employees has increased by Rs 56,494 crore.
In just one year—between 2024-25 and 2025-26—this cost is expected to rise by 25.24 per cent. According to the 2025-26 state budget presented on March 10, the finance department has projected an expenditure of Rs 75,137 crore for pensions and retirement benefits, an increase of Rs 15,099 crore from Rs 60,038 crore (revised estimate) in 2024-25.
A senior mantralaya official expressed concern over the widening gap between revenue receipts and expenditure. “The situation is currently manageable, but without financial discipline, it could spiral out of control in the coming years,” the official warned. While government expenditure is rising sharply, revenue growth is not keeping pace. Pension costs have increased four times in the last decade, but revenue receipts have grown by only 203 per cent in the same period—from Rs 1,85,036 crore in 2015-16 to an estimated Rs 5,60,964 crore in 2025-26.
In 2015-16, pensions and retirement benefits accounted for 10.08 per cent of the state`s total revenue receipts. By 2025-26, this figure is projected to rise to 13.3 per cent. The ruling Mahayuti government (BJP, Shiv Sena—Eknath Shinde, and NCP—Ajit Pawar) has estimated revenue receipts of R5,60,964 crore while allocating Rs 75,137 crore for retirement benefits.
This rising financial burden is said to be one of the reasons that has led the state to hold back on key welfare commitments. It has refrained from increasing financial assistance under its flagship Ladki Bahin Yojana from R1500 to R2100 and has also avoided announcing a complete loan waiver for farmers. Despite the state`s mounting debt and growing pension liabilities, former Maharashtra finance minister Sudhir Mungantiwar has demanded a farm loan waiver. Last week, while speaking on the budget, the senior BJP leader argued that a waiver would cost R20,000 crore—less than the annual rise in pension and salary expenses.
mid-day had recently reported on Maharashtra’s growing debt burden. According to the state budget, Maharashtra’s debt stock has risen from R3.24 lakh crore in 2015-16 to R9.32 lakh crore in 2025-26, with interest payments alone amounting to R64,659 crore.
In the run-up to the state elections, the Mahayuti government launched the Ladki Bahin Yojana, offering R1500 per month to women. The Opposition MVA (Congress, Sharad Pawar-led NCP, and Shiv Sena—UBT) had promised to increase this to R3000 per month if elected. To counter this, Mahayuti pledged a hike to R2100 per month during its campaign.
Earlier this month, after presenting the budget, CM Devendra Fadnavis and Deputy CM Ajit Pawar assured that Mahayuti would fulfill all election promises, including the Ladki Bahin hike and farmer loan waivers. However, they declined to specify a timeline for implementation.
