Maharashtra Departments Told To Ensure 'No Rush Of Expenditure' In Last Month Of FY25

The Maharashtra finance ministry has directed all state departments to avoid a 'rush of expenditure' in the final month of the current financial year and to ensure 60% of their allotted budget is spent by December 2025.

A government notification issued on Monday night stated that departments failing to meet 50% expenditure by December will face proportionate budget cuts.

As per the order, 60% of the funds will be released during the first nine months of FY 2025-26, ending December.

"The budgeted expenditure for 2025-26 should be allocated appropriately and reviewed monthly at the level of department heads. Departments must avoid last-minute spending and share monthly updates with monitoring authorities," the order said.

It further warned that any financial irregularity will be the responsibility of the respective administrative department. Departments are also advised to plan their spending efficiently to avoid budget reductions.

It also said proposals for the approval of prizes, publications, foreign travel, advertising and publicity, motor vehicles, other administrative expenses should be sent to the finance department with proper justification.

The proposals should be routed through the planning, social justice, special assistance, tribal development departments and the departmental budget cells.

Notably, Maharashtra Chief Secretary Sujata Saunik last month issued a directive to all departments mandating that any new proposals presented to the state cabinet must clearly outline the potential increase in expenditure beyond their allocated budget.

The directive, issued amid signs of the state's financial constraints, called for transparency in identifying the potential increases in expenditure for any new proposal, thus holding departments accountable for their financial commitments.

In the more than Rs 7,00,020 crore state budget for the fiscal 2025-26 presented by state Finance Minister Ajit Pawar last month, the government projected a revenue deficit of Rs 45,891 crore and a fiscal deficit of more than Rs 1,36,000 crore.

The revenue receipts are expected to be more than Rs 5,60,000 crore.

Deputy Chief Minister Pawar had said the government has been successful in keeping the fiscal deficit below 3 per cent of the Gross State Domestic Product (GDSP), and the state's revenue deficit has been consistently less than 1 per cent of the gross state income.

(With inputs from PTI)