India, March 12 -- Even as the cash-strapped Maharashtra government faces an estimated debt of Rs.9,32,242 crore for the financial year 2025-26, the highest in the state's history, the amount of money it is owed from tax and non-tax revenue has accumulated to a whopping Rs.1.66 lakh crore. That's over 22% of the state budget.

While presenting the state budget for FY 2025-26 on Monday, finance minister Ajit Pawar announced an amnesty scheme for pending arrears. The government expects tax revenue of around Rs.8,000 crore from this scheme, with most of the unrealised tax revenue stemming from tax disputes with central government departments and oil marketing companies.

However, even if the government manages to recover the entire Rs.8,000 ...