Maharashtra's Finance Department Restricts Additional Fund Demands to Essential Expenses
The Maharashtra government, grappling with a record debt of Rs 9.3 lakh crore, has instructed its departments to request additional funds only for essential and compulsory expenses. These demands will be part of the supplementary budget tabled before the state legislature in December.
MaharashtraFinanceBudgetSupplementary DemandsEssential ExpensesReal Estate MaharashtraOct 27, 2025
In a government resolution issued on Monday, the finance department emphasized the need to control expenditure due to the state's limited resources. The resolution stated, 'Considering the limited resources of the State, it is necessary to keep control over the expenditure to be spent on the budget in accordance with the proper allocation of the expenditure of the budgeted funds. It is necessary to consider the expenditure on very urgent and essential compulsory items, judicial orders, or centrally sponsored schemes.'
The government resolution further clarified that only the following should be submitted as supplementary budgetary demands: Money sanctioned from the Contingency Fund which has not been submitted to the state legislature and is required to be spent on the orders of the court, expenses incurred on account of court orders, or specific demands for bringing expenditure on new work under the direction of the state legislature.
Additionally, matters for which the budget for the Central and state governments for centrally supported schemes has not been approved or the expenditure has exceeded 50% of the budget. Also, matters where more than 70% of the budgeted expenditure has been incurred and funds cannot be made available for this by redeployment or reappropriation in the current financial year and such matters require more expenditure.
The state government has come under financial strain due to pre-poll sops like the Mukhya Mantri Majhi Ladki Bahin Yojana, for which Rs 36,000 crore has been budgeted in 2025-26. This financial pressure has necessitated the stringent measures to control and manage the state's fiscal health effectively.
Frequently Asked Questions
What is the current debt of the Maharashtra government?
The current debt of the Maharashtra government is Rs 9.3 lakh crore.
When will the supplementary budget be tabled before the state legislature?
The supplementary budget will be tabled before the state legislature in December.
What types of expenses are eligible for supplementary budgetary demands?
Expenses eligible for supplementary budgetary demands include money sanctioned from the Contingency Fund, expenses incurred on court orders, and matters where the budget has exceeded 50% or 70% of the allocated funds.
What is the Mukhya Mantri Majhi Ladki Bahin Yojana?
The Mukhya Mantri Majhi Ladki Bahin Yojana is a pre-poll scheme for which Rs 36,000 crore has been budgeted in 2025-26.
Why is the Maharashtra government under financial strain?
The Maharashtra government is under financial strain due to pre-poll sops like the Mukhya Mantri Majhi Ladki Bahin Yojana and the overall high debt of Rs 9.3 lakh crore.
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