Ahead of budget, CM freezes spending from Feb 15

This will significantly reduce last-minute spending by departments, which often leads to unnecessary expenditure merely to prevent budgetary allocations from lapsing, said senior officials from the state finance department

MUMBAI: As soon as he began reviewing preparations for the state budget for 2026–27, chief minister Devendra Fadnavis ordered a freeze on fresh procurement and expenditure proposals from February 15. The idea is to curb last-minute and non-priority spending.

As soon as he began reviewing preparations for the state budget for 2026–27, chief minister Devendra Fadnavis ordered a freeze on fresh procurement and expenditure proposals from February 15. The idea is to curb last-minute and non-priority spending. (@CMOMaharashtra)

The directive is significant considering the financial stress the state is facing since the introduction of the Mukhyamantri Majhi Ladki Bahin Yojana, the Mahayuti government’s flagship scheme, which gives ₹1,500 per month to around 2.25 crore economically disadvantaged women in the state.

Fadnavis said no new proposals or tenders relating to procurement and expenditure will be accepted after the specified date. Only proposals involving urgent requirements will be considered subject to approval by the finance department. The procurement of medicines has been exempted from the freeze.

Various government departments are expected to plan their spending based on available cash flow while implementing budgetary provisions. However, several departments tend to incur heavy expenditure in the final three months of the financial year, prompting the government to introduce tighter controls.

“This will significantly reduce last-minute spending by departments, which often leads to unnecessary expenditure merely to prevent budgetary allocations from lapsing. It may also result in a substantial portion of budgetary provisions remaining unspent,” a senior official from the state finance department said.

An exception has been made for the purchase of medicines within the limits of available funds. The restrictions will also not apply to centrally sponsored schemes, the state’s matching share under such schemes, and procurement under externally aided projects, states the order.

Purchase proposals under the district annual plan and local development funds of public representatives may be submitted to the finance department, which will take a decision on a case-to-case basis, the order clarifies.

It further states that no administrative approval will be granted for purchase proposals from February 15 even in cases where approval is obtained. The departments will not be able to float tenders.

The directive will remain in force from February 15 to March 31 and is applicable only in this financial year. “The chief minister also ordered that proposals that deal with some sort of urgency will go through the finance department for approvals,” revealed another senior official.

The order has been issued against the backdrop of a comptroller and auditor general (CAG) report tabled during the winter session of the state legislature, in which the state government was rapped for fiscal imbalance in FY2024-25. The report emphasised “expenditure waste and execution failure” and highlighted the underspending of revenue and much lower spending on capital expenditure than budgeted.