The Maharashtra Cabinet has approved the Rs 247.02 billion Jalna-Nanded expressway, which will connect with the Mumbai-Nagpur Samruddhi expressway. The decision comes even as the state grapples with rising fiscal pressures.

The state Finance Department had recently warned that the fiscal deficit, already exceeding Rs 2 trillion, should not breach the 3% limit of Gross State Domestic Product (GSDP). Despite remaining within the permissible threshold for now, the department urged caution, noting that mounting welfare schemes and supplementary demands of Rs 1 trillion could increase financial strain.

According to the Finance Department, the debt-equity ratio for the expressway project has been set at 52.81:47.19. It further highlighted that the fiscal deficit currently stands at 2.59% of GSDP but could exceed 3% if additional loans are taken to fund infrastructure projects and social schemes. "The project must be structured to avoid placing an additional financial burden on the state," the department advised.

The Public Works Department (PWD) acknowledged the Finance Department’s concerns, assuring that financial planning would reflect these considerations.

The Jalna-Nanded expressway is expected to reduce the current 226 km distance between the two cities by 45 km, cutting travel time from four hours to two. A special-purpose vehicle has already been established to oversee the project.

The Finance Department has issued repeated warnings about the growing financial pressures from various welfare programs and infrastructure projects. In a recent review of a proposal for new sports complexes, the department emphasised that revenue shortfalls, fiscal responsibilities, and new schemes have constrained the state’s ability to accept additional liabilities.