Maha CM Fadnavis directs panel to draft roadmap for state financial reforms within six months

Mumbai, Sep 28 (IANS) Highlighting the need to move beyond traditional revenue collection methods, Maharashtra Chief Minister Devendra Fadnavis on Monday called for innovative measures to mobilise resources and streamline the state’s financial and administrative systems.

Presiding over a high-level meeting of the newly constituted Maharashtra Sustainable Public Finance Committee led by former Finance Secretary Vijay Kelkar, the Chief Minister directed the panel to conduct a comprehensive review of fund raising, accounting, and efficient resource allocation, and to prepare an actionable roadmap within six months.

Chief Minister Fadnavis pointed to a key economic mismatch in state agency funds.

“While around Rs 6,000 crore to Rs 7,000 crore belonging to various government bodies is currently invested at modest interest rates of around four per cent, the state government is forced to borrow money from the open market at much higher interest rates of eight to nine per cent,” the Chief Minister said.

“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,” CM Fadnavis added.

The Chief Minister stressed that project delays impair the economic multiplier effect of public investment.

A complete review of state spending will be conducted to enhance expenditure efficiency, he said.

Emphasising that the panel is not a mere formality, the Chief Minister confirmed that the state government will seriously implement its recommendations to overhaul current fiscal and administrative operations.

Chief Minister Fadnavis’ move to form a panel for recommending financial reforms is crucial as the state government is aggressively pursuing its ambitious target of becoming a trillion dollar economy by 2029-30 and five trillion dollar economy by 2047 while focusing on increasing its revenue from state’s own tax and non-tax.

“Total revenue receipts for 2026-27 are estimated to be Rs 6,16,099 crore, an increase of two per cent over the revised estimate of 2025-26. Of this, Rs 4,51,626 crore (73 per cent) will be raised by the state through its own resources, and Rs 1,64,473 crore (27 per cent) will come from the Centre. Resources from the Centre will be in the form of state’s share in Central taxes (16 per cent of revenue receipts) and grants (11 per cent of revenue receipts).”

Maharashtra’s total own tax revenue is estimated to be Rs 4,15,498 crore in 2026-27, an increase of one per cent over the revised estimate of 2025-26.

Own tax revenue as a percentage of GSDP is estimated at 7.7 per cent in 2026-27, lower than the revised estimates for 2025-26 (8 per cent).

As per the actual figures for 2024-25, own tax revenue as a percentage of GSDP was 7.5 per cent.

–IANS

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