PUNE: Increasing fiscal pressures and a significant rise in the state’s debt may lead the government to adjust the ready reckoner (RR) rates starting in April, with an anticipated average increase of over 5% across the state, according to senior government officials on Thursday.
“Given the expanding revenue deficit and an influx of supplementary demands, a revision of the RR rates seems inevitable. The official announcement will be made on March 31,” a senior state government source told TOI.
Consultations with stakeholders in various districts have been completed, but the final decision will hinge on the funds needed to support major infrastructure projects, welfare schemes, and other government spending commitments.
Previously, state authorities raised RR rates by an average of 3.89% last year after keeping rates unchanged for 2023-24 and 2024-25, with a 5% increase noted in 2022-23.
The property registration department has been assigned a revenue target of Rs 63,500 crore for the current financial year, an increase from the previous target of Rs 60,000 crore. Officials report that the department has already reached around 85% of its target before the fiscal year’s conclusion and is expected to meet or surpass the revised goal.
RR rates are established based on property transactions in specific areas, with revisions suggested according to these trends. “In several regions, particularly in cities like Pune, Mumbai, and Thane, transaction values are significantly higher than current RR rates. In some instances, market transactions exceed benchmark rates by over 100%. This pattern is evident in both urban and rural areas, making a rate adjustment necessary,” an official stated.
The state budget projected a revenue deficit of Rs 45,890 crore for March 2025. However, this figure surged following supplementary demands of Rs 57,509.71 crore presented in June 2025. Additional demands of Rs 75,286.37 crore during the winter session in December have brought the revenue deficit close to Rs 2 lakh crore.
The budget also anticipates that the state’s debt burden will reach Rs 9.32 lakh crore. During the ongoing legislative session, Deputy Chief Minister Devendra Fadnavis presented supplementary demands totaling Rs 11,995.33 crore.
Officials from the registration department indicated that some adjustments to the RR rates are warranted. “The registration department is a major revenue source for the state exchequer. Given the fiscal context, rate revisions are necessary,” said a senior official.
Developers have called on the state government to maintain the RR rates this year. Members of the Confederation of Real Estate Developers’ Associations of India (CREDAI) noted that the real estate market remains strong and stable, aided by consistent RR rates over the past two years. “Since the government adjusted the rates last year, there is no need for further increases this year,” a senior CREDAI member told TOI.
A national CREDAI governing council member mentioned that the state has generated sufficient revenue without frequent revisions. “The government should ensure that the middle class is not negatively impacted. The current market is stable and optimistic, and these factors should be taken into account before making a decision,” the member added. An additional increase could potentially deter property buyers and harm market sentiment.
Another CREDAI representative stated that the ongoing growth in property registrations indicates significant contributions to the state’s revenue. “The state has been consistently generating revenue through property registrations. An increase in rates is not urgently needed, as another hike could disrupt the overall system,” he said.
In 2022-23, the registration department achieved approximately 140% of its revenue target, followed by 100% last year, reflecting robust activity within the property market.
