The Maharashtra finance ministry has asked all departments to spend 60% of their budgets by December 2025 and avoid a year-end spending spree, warning that underutilised allocations may face cuts
The directive specifies that 60 per cent of budgetary disbursements will take place during the first nine months of the financial year, up to December 2025.
The Maharashtra Finance Ministry has instructed all state departments to exercise caution and avoid a last-minute rush of expenditure in the concluding month of the 2025-26 financial year, urging them instead to ensure 60 per cent of their allocated budget is spent by December 2025, PTI reports.
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As per a government notification issued late on Monday night, departments failing to utilise at least 50 per cent of their allotted funds by the end of December 2025 will face a proportionate reduction in provisions during the next budget estimate preparations. This measure forms part of the government’s broader strategy to enforce fiscal discipline and improve the quality of public spending.
The directive specifies that 60 per cent of budgetary disbursements will take place during the first nine months of the financial year, up to December 2025. Administrative departments have been asked to allocate their expenditure in a phased manner and conduct monthly reviews to ensure balanced spending. “There should be no rush of expenditure in the last month of the financial year,” the order stated.
It also warns that any financial irregularities or failure to comply with these instructions will render the concerned departments fully accountable.
Furthermore, proposals concerning non-essential items such as awards, publications, foreign travel, advertising and publicity, motor vehicle purchases, and other administrative expenses must be submitted to the finance department with proper justification. These proposals should be routed through relevant departments including planning, social justice, special assistance, tribal development, and the concerned budget cells.
This latest order is similar to a directive issued last month by Maharashtra Chief Secretary Sujata Saunik, which instructed all departments to declare potential increases in expenditure while presenting new proposals to the state cabinet. This move aimed to enhance transparency and keep spending within budgeted limits amidst growing fiscal constraints.
The Maharashtra government’s budget for 2025-26, presented by Deputy Chief Minister and Finance Minister Ajit Pawar, is pegged at over Rs 7,00,020 crore. The projected revenue deficit stands at Rs 45,891 crore, while the fiscal deficit is expected to exceed Rs 1,36,000 crore. Revenue receipts are estimated to be over Rs 5,60,000 crore.
(With inputs from PTI)
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