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Maharashtra has secured a higher allocation under the Union Budget, with INR 89,855.80 crore earmarked for tax devolution in 2026&27, according to Union Minister Nitin Gadkari. The state has seen a steady rise in central support since 2014, alongside major investments in metro rail, railways and station redevelopment. Ongoing projects include Nagpur Metro expansions, railway works worth INR 1.70 lakh crore and redevelopment of 128 stations. The budget also focuses on reducing logistics costs and boosting infrastructure-led growth.
Maharashtra has received a significant increase in financial support under the Union Budget, with a provision of INR 89,855.80 crore allocated towards tax devolution, Union Road Transport and Highways Minister Nitin Gadkari said while addressing the media in Nagpur. He stated that the state's share in national infrastructure spending has steadily grown over the years, reflecting its importance in the country's development plans. Advertisement
Referring to the Union Budget presented earlier this month, Gadkari said Maharashtra has emerged as one of the key beneficiaries in the coming financial year. As per the budget estimates for 2026-27, tax devolution to the state stands at INR 89,855.80 crore. In comparison, the budget estimates for 2025-26 had provided INR 50,511 crore to Maharashtra in the form of grants-in-aid, indicating a sharp rise in central support.
Providing a broader context, Gadkari pointed out that between 2014 and 2026, Maharashtra has received a cumulative INR 5.83 lakh crore through tax devolution and an additional INR 3.66 lakh crore as grants. He noted that these funds have played a critical role in strengthening infrastructure across urban and semi-urban regions of the state.
On urban transport, Gadkari said work on Nagpur Metro Phase 2 is nearing completion. He also outlined plans under Nagpur Metro Phase 3, which include proposed corridors from Sitabuldi to Koradi spanning 11.5 km, Butibori MIDC to Khapri, a 3 km link to Nagpur Satellite City, and a 15 km stretch along the Inner Ring Road. Approval has already been granted for the preparation of Detailed Project Reports, and construction activity is expected to begin shortly after procedural clearances.
The minister highlighted that railway infrastructure remains a major focus area, with projects worth INR 1.70 lakh crore currently under execution across Maharashtra. He said 41 new railway projects, covering a combined length of 5,877 km and involving an investment of INR 81,580 crore, are progressing at various stages.
Under the Amrit Bharat Scheme, redevelopment work is ongoing at 128 railway stations in the state. Several stations in the Vidarbha region, including Nagpur, Ajni, Akola, Amravati, Badnera, Gondia, Hinganghat, Wardha and Washim, are part of this programme aimed at improving passenger facilities and station infrastructure.
Gadkari also spoke about the broader economic impact of infrastructure investment, stating that improvements in connectivity, logistics efficiency and multimodal transport would yield long-term benefits for Maharashtra as well as the national economy. He added that the Union Budget is expected to accelerate overall development and support employment generation.
Touching upon logistics, the minister said India's logistics costs have declined steadily over recent years. He noted that while developed economies operate with logistics costs of around 8 per cent to 9 per cent of GDP, China is close to 8 per cent and European countries average around 12 per cent. India's logistics costs, which earlier ranged between 14 per cent and 16 per cent of GDP, have come down significantly.
The government is targeting logistics costs below 10 per cent of GDP through public-private partnership reforms, higher private investment, adoption of green technologies and faster execution of infrastructure projects. Gadkari cited studies by IIM Bengaluru, IIT Madras and IIT Kanpur, which indicate that infrastructure-led reforms have already reduced logistics costs by 5 to 6 percentage points, bringing them closer to the 9 per cent to 10 per cent range.
He further said the Union Budget's capital expenditure of INR 12.20 lakh crore, with a strong focus on roads, railways and shipping, is expected to support economic growth, improve competitiveness and create employment. The proposed Infrastructure Risk Guarantee Fund, he added, is likely to strengthen BOT and PPP models by improving investor confidence in long-gestation infrastructure projects.
Source PTI
FAQ
Q1. How much tax devolution has Maharashtra received in the Union Budget
Maharashtra has been allocated INR 89,855.80 crore under tax devolution for 2026-27, as per the Union Budget estimates. This represents a substantial rise in central transfers compared to previous years and underlines the state's importance in the national economy. The higher allocation is expected to strengthen the state's fiscal position and support spending on infrastructure, social services and development programmes.
Q2. How has central funding to Maharashtra evolved over the years
Central financial support to Maharashtra has increased steadily since 2014. Between 2014 and 2026, the state received about INR 5.83 lakh crore through tax devolution and an additional INR 3.66 lakh crore in the form of grants. These funds have been used to finance large-scale infrastructure projects, urban transport systems and connectivity improvements across regions.
Q3. What are the key metro rail projects highlighted for Maharashtra
Nagpur Metro Phase 2 is nearing completion, expanding the city's urban transport network. In addition, Phase 3 is at the planning stage, with proposed corridors such as Sitabuldi to Koradi, Butibori MIDC to Khapri, a 3 km link to Nagpur Satellite City, and a 15 km stretch along the Inner Ring Road. Detailed Project Report preparation has been approved, paving the way for future construction.
Q4. What level of investment is being made in railway infrastructure
Railway infrastructure remains a major focus area, with projects worth around INR 1.70 lakh crore currently under execution across Maharashtra. This includes 41 new railway projects covering nearly 5,877 km, involving an investment of about INR 81,580 crore. These projects are aimed at improving connectivity, increasing capacity and enhancing safety.
Q5. How extensive is railway station redevelopment in the state
Under the Amrit Bharat Station Scheme, redevelopment work is underway at 128 railway stations across Maharashtra. Stations in regions such as Vidarbha, including Nagpur, Ajni, Akola, Amravati, Gondia and Wardha, are being upgraded to provide better passenger amenities, improved access and modernised infrastructure.
Q6. What does the budget say about logistics costs and economic impact
The Union Budget places strong emphasis on reducing logistics costs to below 10 per cent of GDP through higher capital expenditure, PPP reforms and adoption of green technologies. Improved transport and logistics infrastructure is expected to lower costs for businesses, boost competitiveness, encourage private investment and support long-term economic growth and employment in Maharashtra.
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