Maharashtra Faces ₹80,000 Cr Financial Crisis as Dues Go Unpaid.

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

Maharashtra faces a severe financial crisis as ₹80,000 crore in contractor dues remain unpaid. Despite grand development promises, empty state coffers have halted infrastructure projects for five months. Contractors and workers face financial distress, while ruling MLAs remain silent. Fiscal mismanagement threatens the state’s economic stability, exposing serious governance failures.

Maharashtra’s ongoing financial turmoil has reached alarming levels due to the unplanned governance of the Mahayuti government. While grand development projects worth crores were announced ahead of the Lok Sabha and upcoming Assembly elections, the state treasury now finds itself dry. To fund schemes like the ₹1,500 monthly allowance for women under the Social Justice and Tribal Development departments, thousands of crores have been diverted. Simultaneously, dues for critical infrastructure projects remain unpaid, pushing contractors toward financial starvation.

According to data accessed by the Sprouts News Investigation Team (SIT), pending bills for infrastructure works under key departments like Public Works, Rural Development, Jal Jeevan Mission, Water Resources, and Urban Development have ballooned to ₹80,000 crore. Before the Lok Sabha elections, the dues stood at ₹36,000 crore — more than doubling since then.

Typically, contractors receive payments in four staggered phases. However, in March, the Mahayuti government managed to release only ₹924 crore toward outstanding bills — a fraction of the total arrears. Despite the start of a new financial year in April, no disbursements have been made so far for DPDC allocations, MLA Local Development Funds, or Special Funds.

The Sprouts News Investigation Team (SIT) has learned that this financial paralysis is now crippling not just contractors but the entire development ecosystem. Suppliers of raw materials, thousands of laborers dependent on these projects, and small ancillary businesses are all facing severe financial hardship. “Everyone’s survival has become difficult,” stated Milind Bhosale, President of the Maharashtra State Contractors Association.

Contractors have resorted to democratic means of protest, including sit-ins and rallies, demanding release of their dues. However, the state government has so far failed to offer any concrete assurance on clearing the arrears. As a result, contractors initiated a work stoppage in February. Development work across Maharashtra has been at a standstill for the past five months, confirmed Bhosale to the Sprouts News Investigation Team (SIT).

Department

Pending Dues (₹ Crore)

Public Works

38,000

Rural Development

6,500

Water Resources

12,000

Urban Development

4,217

Jal Jeevan Mission

9,000

Special Funds

4,500

District Planning Board

3,800

MLA Local Development

3,500

Criticism is mounting against the state leadership for its alleged hypocrisy. While development works remain halted, not a single MLA from the ruling alliance has publicly addressed the issue of unpaid dues. “When the treasury is empty, how did the government float tenders worth thousands of crores? It is clear that the so-called development agenda is nothing but a ploy for the ruling class to siphon off funds,” alleged Milind Bhosale in an exclusive statement to Sprouts News Investigation Team (SIT).

This massive fiscal mismanagement raises serious concerns about Maharashtra’s financial planning and governance priorities. Industry experts and policymakers now fear that unless immediate corrective measures are taken, the state may soon face cascading defaults, legal challenges from contractors, and further economic destabilization.

The Sprouts News Investigation Team (SIT) continues to monitor this developing crisis, which exposes the fragile underbelly of Maharashtra’s financial health, even as tall promises of development dominate political narratives.