Mumbai: Maharashtra’s mounting public debt and alleged delays in clearing payments to small contractors triggered a fresh political row on Wednesday, with NCP (SP) accusing the BJP-led state government of pushing nearly three lakh contractors and developers into financial distress.NCP (SP) spokesperson Mahesh Tapase claimed that the state’s public debt has crossed Rs 10 lakh crore and alleged that dues for completed government projects remain pending across multiple departments, leaving small contractors struggling to survive.The party said associations representing small contractors in Maharashtra have written to Union Finance Minister Nirmala Sitharaman seeking intervention over unpaid government bills, with copies of the representation also sent to Chief Minister Devendra Fadnavis and the Governor of the Reserve Bank of India.“The BJP government keeps advertising Maharashtra as an investment destination and promoter of small businesses. While the government continues to borrow money in the name of projects, it fails to pay for the same. If bills of small contractors are pending for years, then where exactly is the money going?” Tapase asked.He further alleged that the state was “heading towards a financial catastrophe” as public debt rises and questioned the functioning of the finance department. “The fact that small contractors are compelled to approach the Union Finance Minister itself shows a complete failure of Maharashtra’s finance department,” he said.Tapase demanded that Fadnavis publicly disclose the exact amount of arrears pending as of March 31, 2026, across all government departments and contracts.The state government has not immediately responded to the specific allegations regarding pending dues or the demand for a consolidated disclosure of arrears across departments.The BJP-led Mahayuti government has consistently maintained that Maharashtra remains among the country’s leading investment destinations and that infrastructure spending and capital expenditure are central to its growth strategy. State governments routinely borrow through market loans and other instruments to finance infrastructure, welfare and development projects, though concerns over debt sustainability and payment delays periodically surface in political and budget debates.Delayed government payments can particularly affect small contractors and MSMEs, many of whom depend on timely bill clearances to service bank loans, pay workers and sustain cash flow. Industry bodies have often argued that prolonged payment cycles can lead to project slowdowns and financial stress.
