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Maharashtra departments directed to avoid last-minute expenditure surge in FY25

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

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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 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.

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.

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