Maharashtra Govt Announces Farm Loan Waiver Up To ₹2 Lakh in Budget 2026–27

Maharashtra Chief Minister Devendra Fadnavis on Friday announced a farm loan waiver scheme as part of the state Budget for 2026–27, providing relief to farmers through the write-off of crop loans up to ₹2 lakh, as per PTI reports. 

The scheme, named Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojna, will cover loans taken until September 30, 2025.  

Loan Waiver and Farmer Incentives 

Under the scheme, eligible farmers will receive a waiver on crop loans up to ₹2 lakh. In addition, the government will provide an incentive of ₹50,000 to farmers who have consistently repaid their loans on time. 

Giving details of the scheme, Fadnavis said the cut-off date for eligibility has been fixed as September 30, 2025. 

"We have decided to waive farm loan up to Rs 2 lakh. We have also decided to give Rs 50 lakh (as incentive) to those who pay loan regularly," stated Fadnavis, who became the first CM of Maharashtra to present a budget. 

According to the chief minister, a committee set up to examine the loan waiver has begun collecting data. So far, information relating to nearly 28–30 lakh farmers has been compiled, while the final dataset is expected to take another 15–25 days to complete. 

"This will not be a restrictive loan waiver," Fadnavis emphasised. He added that nearly 20 lakh farmer accounts that have repaid loans regularly may qualify for the incentive under the scheme. 

Focus on infrastructure and fiscal discipline 

The chief minister also highlighted that the state has increased capital expenditure significantly in the new budget. 

He said capital spending has been raised by about 21%, from ₹93,000 crore to ₹1.12 lakh crore, aimed at strengthening infrastructure and capacity creation. 

Fadnavis noted that the government has chosen to continue welfare programmes despite fiscal pressures. Referring to the Mukhyamantri Ladki Bahin Yojana, he said the administration decided to mobilise resources rather than discontinue key schemes. 

On fiscal management, he stated that Maharashtra has kept its fiscal deficit at 2.7% of the Gross State Domestic Product (GSDP), below the 3% limit prescribed under the Fiscal Responsibility and Budget Management (FRBM) Act. Revenue deficit has also been maintained below 1% of GSDP, while the state's loan level stands at 18.5%, well under the 28% ceiling. 

Fadnavis said Maharashtra’s economy is estimated at around ₹51 lakh crore, placing it among the world’s larger economies. 

Read More: Maharashtra Budget Session Begins Today, March 6, as Economic Survey Projects Stronger Growth For 2025–26! 

Conclusion 

The budget outlines a combination of farmer relief measures, infrastructure spending and fiscal discipline as the state aims to sustain growth while addressing agricultural stress. The government has projected Maharashtra’s economy to expand by 7.9% in 2025–26, although agricultural growth has been impacted by crop losses due to heavy rainfall. 

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