Maharashtra Government Unveils Farm Loan Waiver and Continued Cash Transfer Scheme

In a significant move, Maharashtra's Chief Minister Devendra Fadnavis has announced a farm loan waiver of up to Rs 2 lakh and confirmed the continuation of the Ladki Bahin cash transfer scheme during the presentation of the 2026-27 budget. With a budget exceeding Rs 7.6 lakh crore, the government aims to transform Maharashtra into a $5 trillion economy by 2047. The budget includes incentives for farmers and highlights the importance of the Ladki Bahin scheme, which has played a crucial role in recent electoral successes. However, the scheme has also faced scrutiny regarding its financial sustainability and eligibility issues.

By Narendra Chaudhary Mar 6, 2026, 20:28 IST

Maharashtra Budget 2026-27 Highlights

On Friday, Maharashtra's Chief Minister Devendra Fadnavis revealed a significant farm loan waiver of up to Rs 2 lakh while presenting the state’s budget for 2026-27. This announcement was made during a session in the Assembly, where he also confirmed the continuation of the Ladki Bahin cash transfer initiative.

Fadnavis, who oversees the finance department, introduced a budget exceeding Rs 7.6 lakh crore. He expressed the government's ambition to elevate Maharashtra to a $5 trillion economy by the year 2047.

A notable feature of the budget is the loan waiver under the Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojana, which will enable eligible farmers to have their crop loans of up to Rs 2 lakh written off, provided these loans were taken before September 30.

Additionally, farmers who consistently repay their loans will be rewarded with an incentive grant of Rs 50,000.

Fadnavis also reaffirmed the continuation of the Mukhyamantri Majhi Ladki Bahin Yojana, which was initiated in June 2024. This scheme offers a monthly payment of Rs 1,500 to women aged between 21 and 65 from families earning less than Rs 2.5 lakh annually.

He stated, “We have allocated funds for the upcoming year. A new scheme for single women will be introduced, ensuring no increase in instalments, but the existing scheme will persist.”

The Ladki Bahin initiative has been credited with significantly contributing to the Bharatiya Janata Party-led Mahayuti alliance's success in securing 230 out of 288 seats in the November 2024 Assembly elections.

Nonetheless, the scheme has faced criticism for its financial implications on the state budget, with monthly reviews revealing several cases of ineligible participants.