Maharashtra Chief Minister Devendra Fadnavis on Monday, 28 September 2026, directed the newly constituted Maharashtra Sustainable Public Finance Committee — chaired by former Union Finance Secretary Vijay Kelkar — to prepare a comprehensive, actionable roadmap for the state's financial and administrative reforms within six months. The directive came during a high-level meeting in Mumbai, with the Chief Minister stressing the urgent need to move beyond conventional revenue collection and plug costly inefficiencies in how state funds are deployed.

The Core Problem: A ₹6,000–7,000 Crore Interest Rate Mismatch

At the heart of the Chief Minister's concern is a structural anomaly in how Maharashtra's state agencies manage their idle cash. Fadnavis pointed out that roughly ₹6,000 crore to ₹7,000 crore belonging to various government bodies is currently parked at interest rates of around 4%, while the state simultaneously borrows from open markets at rates of 8–9%.

'This discrepancy must be resolved to ensure more effective utilisation of available funds. We must develop innovative financial instruments that protect the security and financial autonomy of state agencies while maximising the use of their capital,' Fadnavis said. The spread between the two rates, critics argue, amounts to a self-imposed fiscal drag that erodes the state's borrowing efficiency year after year.

Scope of the Kelkar Panel's Mandate

The Maharashtra Sustainable Public Finance Committee has been tasked with conducting a full-spectrum review of fund-raising strategies, state accounting practices, and resource allocation frameworks. The Chief Minister made clear the panel is not a ceremonial exercise — the government, he said, intends to seriously implement its recommendations to overhaul existing fiscal and administrative operations.

Project delays were specifically flagged as a concern, with Fadnavis noting that cost and time overruns impair the economic multiplier effect of public investment. A complete audit of state expenditure efficiency is reportedly on the agenda.

Maharashtra's Revenue Landscape in 2026–27

The reform push comes at a critical juncture for the state's finances. Total revenue receipts for 2026–27 are estimated at ₹6,16,099 crore, an increase of 2% over the revised estimates for 2025–26. Of this, ₹4,51,626 crore — or 73% — will be raised by the state through its own resources, while the remaining ₹1,64,473 crore (27%) will flow from the Centre as Maharashtra's share in central taxes and grants.

Maharashtra's own tax revenue is estimated at ₹4,15,498 crore in 2026–27, a 1% increase over revised estimates for the previous year. However, own tax revenue as a percentage of GSDP is projected at 7.7% — slightly lower than the revised 8% for 2025–26, and above the actual 7.5% recorded in 2024–25.

The Bigger Target: A Trillion-Dollar Economy by 2029–30

The financial reform drive is directly linked to Maharashtra's ambitious economic trajectory. The state government is aggressively pursuing a $1 trillion economy target by 2029–30 and a $5 trillion milestone by 2047. Achieving those goals requires not just higher revenue generation but a structurally sound public finance architecture — which is precisely what the Kelkar panel is expected to map out.

Notably, this is the first high-level fiscal reform committee Maharashtra has constituted under Fadnavis's current term, signalling that the government views institutional reform — not just incremental budgeting — as central to its growth strategy. The panel's recommendations, expected by early 2027, will be closely watched by bond markets, multilateral lenders, and industry bodies tracking the state's fiscal health.