Maharashtra Finance Department Calls for Controlled Spending in Final Month of Fiscal Year
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Synopsis
The Maharashtra Finance Department has mandated all departments to avoid hasty expenditures in the final month of the fiscal year 2025-26, warning that any department spending less than 50% by December will face budget cuts. This directive aims to prevent financial irregularities and ensure responsible fiscal management.
Key Takeaways
- Maharashtra Finance Department issues directive to prevent last-minute spending.
- Departments must monitor expenditures to avoid cuts in budget provisions.
- Financial irregularities will be the responsibility of administrative departments.
- Previous rush spending resulted in significant fund lapses.
- Projected revenue and fiscal deficits for 2025-26 are substantial.
Mumbai, April 7 (NationPress) In light of the growing disparity between revenue receipts and expenditures, the Maharashtra Finance Department has instructed all departments to prevent any rush of expenditure during the final month of the fiscal year 2025-26.
The department has cautioned that if any department's spending falls below 50 percent by December 2025-26, there will be a reduction in budget provisions.
A comprehensive notification was issued detailing the allocation and management of funds across departments, aimed at meeting the objectives outlined by Finance Minister and Deputy Chief Minister Ajit Pawar during the annual budget presentation for 2025-26.
The notification states: “The expenditure of administrative departments for the year 2025-26 must be properly allocated and reviewed monthly by the heads of administrative departments to avoid any rush of expenditure in the final month of the fiscal year, and this information must be communicated to controlling authorities.”
It further emphasized that any financial discrepancies would hold the administrative department accountable. Moreover, departments with spending below 50 percent by the end of December 2025 will see a proportional reduction in their budget estimates, with full accountability resting on the respective administrative departments.
This notification comes after a previous fiscal year saw a last-minute spending rush that resulted in the loss of Rs 64 crore from the Tribal Development department.
Additionally, the finance minister and Deputy Chief Minister Ajit Pawar projected a revenue deficit of Rs 45,891 crore and a fiscal deficit of Rs 1.36 lakh crore for 2025-26.
The Finance Minister has estimated a total expenditure of Rs 7,00,020 crore against revenue receipts of Rs 5,60,963 crore and revenue expenditure of Rs 6,06,855 crore.
Notably, the Comptroller and Auditor General (CAG) has previously reported on the pattern of rushed expenditures by various state departments in the last quarter.
“Substantial spending in the final month of the fiscal year contradicts sound financial management principles and reveals deficiencies in internal controls and budget management,” stated the State Finances Audit Report of the Comptroller and Auditor General of India for the year ending March 31, 2023.
