Fadnavis orders 95% utilisation of Central funds in Maharashtra
Synopsis
Maharashtra CM Devendra Fadnavis has set a hard floor: every state department must cross 95% utilisation of central funds this year. With ₹16,000–17,000 crore in central allocations on the table and a Chief Secretary-led quarterly review mechanism now in place, the state is signalling a shift from passive fund absorption to active accountability — a model other states may be pressed to follow.
Key Takeaways
CM Devendra Fadnavis on 21 August mandated over 95 per cent utilisation of central funds across all Maharashtra departments.
Maharashtra is projected to deploy ₹16,000–17,000 crore in central funds next year, with a significant share for capital expenditure.
The Chief Secretary will head a quarterly review mechanism tracking utilisation against specific performance indicators.
School Education and Sports led with 96 per cent utilisation; MGNREGA achieved 100 per cent ; PM Ayushman Bharat Health Infrastructure Mission recorded 111 per cent .
Rural Development spent ₹8,537 crore of ₹9,874 crore distributed ( 86 per cent ); Public Health recorded 75 per cent utilisation of distributed funds.
Strict action has been warned for departments that miss timelines; new central accounting systems must be adopted immediately.
Maharashtra Chief Minister Devendra Fadnavis on Friday, 21 August directed all state departments to ensure effective and timely utilisation of Union government funds allocated under central schemes, setting a mandatory target of over 95 per cent fund utilisation for the current year. The directive came during a high-level review meeting on the availability and allocation of central funds held in Mumbai.
Key Directives from the Chief Minister
Fadnavis underscored that Maharashtra has the capacity to deploy between ₹16,000 crore and ₹17,000 crore in central funds in the coming year, with a substantial share earmarked for capital expenditure. He instructed department heads to take direct ownership of executing centrally sponsored schemes within stipulated deadlines, and to blend state resources with central grants to accelerate development without gaps.
Departments were also directed to conduct thorough financial reviews — assessing allocated, spent, and remaining funds — and to resolve accounting bottlenecks without delay. Officials must adopt new central accounting and technical systems immediately, rather than waiting for cut-off dates. Fadnavis warned that strict action would follow if tasks were not completed within fixed timelines.
Tracking Mechanism and Oversight
The Chief Minister announced that the Chief Secretary will head a dedicated tracking mechanism to review central fund utilisation every three months, based on specific performance indicators. Presentations at the meeting were led by Resident Commissioner Sushil Gaikwad and Additional Chief Secretary (Finance) Vikas Chandra Rastogi, who detailed the performance of Centrally Sponsored Schemes (CSS) across state departments.
Department-wise Performance
The School Education and Sports Department led state utilisation at 96 per cent, achieving a 99.9 per cent budget utilisation rate. Cooperation, Marketing, and Textiles and the Home Department each recorded 99 per cent fund utilisation, while Soil and Water Conservation reached 98 per cent. The Agriculture and Allied Activities department recorded 94 per cent utilisation.
The Rural Development department spent ₹8,537 crore out of ₹9,874 crore distributed, reflecting 86 per cent utilisation against a total budget provision of ₹10,283 crore. The Women and Child Development department recorded 83 per cent utilisation relative to distributed funds, while Public Health logged 75 per cent usage — though this translates to 101 per cent against budget provision. Notably, the MGNREGA Scheme achieved 100 per cent utilisation of distributed funds, and the PM Ayushman Bharat Health Infrastructure Mission recorded 111 per cent fund utilisation.
What This Means for Maharashtra's Development
Fadnavis concluded that the primary objective of these quarterly reviews is to eliminate internal delays and drive faster regional growth through full utilisation of central funding. This comes amid broader concerns at the national level about states leaving central allocations underutilised — a pattern that has historically delayed infrastructure and welfare delivery. Maharashtra's push for a 95 per cent-plus utilisation floor signals a shift toward outcome-linked governance, with accountability now tied directly to the Chief Secretary's office.
Point of View
But the 95 per cent target alone does not tell the full story. High utilisation rates in departments like PM Ayushman Bharat — at 111 per cent — raise questions about budget accuracy and whether demand projections are realistic. Meanwhile, Rural Development and Women and Child Development lagging behind suggests that welfare-heavy portfolios remain structurally harder to execute, not merely administratively slack. A Chief Secretary-led quarterly review is a step up in accountability, but its credibility will depend on whether performance indicators are publicly reported or remain internal. The real test is not how much Maharashtra spends, but what it delivers per rupee of central funding.
NationPress
21 Aug 2026
Frequently Asked Questions
What did Maharashtra CM Devendra Fadnavis direct at the central funds review meeting?
CM Devendra Fadnavis directed all Maharashtra state departments to achieve over 95 per cent utilisation of central funds this year. He also instructed departments to resolve accounting bottlenecks, adopt new central systems immediately, and blend state resources with central grants to accelerate development.
How much central funding is Maharashtra expected to utilise next year?
Maharashtra has the capacity to deploy between ₹16,000 crore and ₹17,000 crore in central funds next year, according to CM Fadnavis, with a significant portion directed toward capital expenditure.
Which Maharashtra departments recorded the highest fund utilisation?
The MGNREGA Scheme achieved 100 per cent utilisation of distributed funds, while the PM Ayushman Bharat Health Infrastructure Mission recorded 111 per cent. Cooperation, Marketing and Textiles and the Home Department each reached 99 per cent, and School Education and Sports led at 96 per cent with a 99.9 per cent budget utilisation rate.
Which departments lagged in central fund utilisation?
Public Health recorded 75 per cent utilisation of distributed funds, and Women and Child Development reached 83 per cent. Rural Development spent ₹8,537 crore of ₹9,874 crore distributed, reflecting 86 per cent utilisation.
What oversight mechanism has been put in place to track fund utilisation?
The Chief Secretary of Maharashtra will head a tracking mechanism that reviews central fund utilisation every three months, based on specific performance indicators, as directed by CM Fadnavis at the review meeting.
