Ensure 'no rush expenditure' in last month of fiscal year: Maha Finance Dept

Mumbai, April 7 (IANS) Amid a widening gap between the revenue receipts and revenue expenditure, the Maharashtra Finance Department on Monday has directed all the departments to ensure 'no rush of expenditure’ in the last month of the fiscal year 2025-26.

The department has warned of a reduction in the provision if the department's expenditure is less than 50 per cent by December 2025-26.

The Finance Department released a detailed notification on the use of funds earmarked to all departments in the budget and how to streamline it to achieve the targets laid down by the Finance Minister and Deputy Chief Minister Ajit Pawar while presenting the annual budget for 2025-26.

The Finance Department, in a notification, said: “The expenditure of the administrative departments for the year 2025-26 should be allocated appropriately. This should be reviewed every month at the level of the heads of administrative departments, and care should be taken to ensure that there is no rush of expenditure in the last month of the year, and such information should be given to the controlling authorities.”

The notification further added that: “If there is any financial irregularity in this regard, the administrative department will be responsible for it. Also, the provisions of the departments whose expenditure is less than 50 per cent by the end of December 2025 will be reduced in a proportionate manner while preparing the estimates, and the entire responsibility will remain with the concerned administrative departments.”

The finance department’s notification is important, especially after how rush of expenditure on the last day of the previous financial year resulted in the lapse of Rs 64 crore funds of the Tribal Development department.

The notification is also important as the finance minister and Deputy Chief Minister Ajit Pawar had estimated the revenue deficit of Rs 45,891 crore and fiscal deficit of Rs 1.36 lakh crore in 2025-26.

The Finance Minister has estimated total expenditure of Rs 7,00,020 crore with revenue receipts of Rs 5,60,963 crore and revenue expenditure of Rs 6,06,855 crore.

Interestingly, the Comptroller and Auditor General (CAG) in its reports earlier on state finances have highlighted the rush in expenditure during the last quarter by various state departments.

“Huge expenditure in the last month of the financial year is inconsistent with prudent financial management and indicates a weak internal control system and lack of budgetary control/management,” said the State Finances Audit Report of the Comptroller and Auditor General of India for the year ended 31 March 2023.

--IANS

sj/dan