Every year, the central budget allocates substantial funds for the developmental schemes. However, they require active state participation to succeed. Many times, states fail to spend allocated central funds due to administrative bottlenecks, creating a vicious cycle of delayed infrastructure, reduced future allocations, and stagnated regional growth. The Maharashtra government has devised an action plan to accelerate the state’s development through the effective implementation of Centrally Sponsored Schemes (CSS). Emphasis has been placed on the timely and optimal utilization of funds received from the Central Government. Chief Minister Devendra Fadnavis has directed the concerned departments to utilize more than 95% of the funds received from the Centre this year.
A meeting chaired by Chief Minister Devendra Fadnavis was recently held in Mumbai on August 21, 2026, to review the Central Government’s schemes. During the meeting, the Chief Minister reviewed the progress of these central schemes and the expenditure incurred on them. The Maharashtra government receives funds worth crores of rupees annually from the centre for various central government schemes to implement the related projects. The Chief Minister directed that capital expenditure activities be accelerated by integrating state-funded schemes with central schemes. Accelerating capital expenditure is a primary objective of the government. The focus is on fostering coordination and a sense of urgency among all government departments to ensure the timely and full utilization of the approximately ₹16,000 to ₹17,000 crore in funds expected from the Central Government in the near future.
Implementation of 101 Schemes Across 37 Departments in Maharashtra
The Central Government implements various schemes through different departments. Among these, schemes pertaining to subjects under state jurisdiction are implemented by the state government. Accordingly, 101 centrally sponsored schemes in Maharashtra are being implemented across 37 departments, as outlined in a government resolution dated October 28, 2025. Decisions regarding necessary administrative and technical reforms have been taken to ensure speed and transparency in the implementation of these schemes. Officials have been instructed to rectify errors and issues within government accounting processes and to promptly resolve any bottlenecks hindering fund utilization. New accounting systems and technical changes stipulated by the Central Government have been readily implemented, with an emphasis on completing processes on time rather than waiting for specific ‘cut-off dates’ for project approvals. Additionally, an audit of expenditures from the past 2–3 years is underway; discrepancies, such as instances where funds were spent but not reflected in the accounts, are being identified and rectified. A robust system has been established for the Chief Secretary to conduct a regular quarterly review of this entire process, ensuring continuous monitoring of the schemes’ effectiveness.
School education and sports department on top
Due to the sincere efforts of the Maharashtra government, several departments have performed well in terms of proper utilization of funds under the centrally sponsored scheme in the financial year 2025-26. The School Education and Sports Department has achieved the top position in the state by directly investing 96 percent of allocated funds and achieving 99.9 percent budget utilization. This is followed by the Cooperation, Marketing and Textile Department (99 percent), Home Department (99 percent), Soil and Water Conservation Department (98 percent), Agriculture and Allied Department (94 percent) and Rural Development Department (86 percent). Specifically, of the Rs 10,283 crore budget allocation for the Rural Development Department, Rs 9,874 crore was actually disbursed and Rs 8,537 crore was spent directly on development works.
Effective use of funds on schemes directly related to citizens
Similarly, the Women and Child Development Department has successfully utilized 83 percent of the funds distributed and the Planning Department has successfully utilized 111 percent of the funds. In the area of health and infrastructure, the Public Health Department has shown 101 per cent utilization of the budget allocation as compared to 111 percent spent by the ‘Pradhan Mantri Ayushman Bharat Health Infrastructure Mission.’ This positive momentum is also visible in big schemes related to employment and health in rural areas; In which 100 percent of the funds distributed under ‘MGNREGA’ have been fully utilized, 82 percent of the funds under ‘Maharashtra State Rural Livelihood Improvement Mission’ and 71 percent of the funds under ‘National Rural Health Mission’ (NRHM) have been spent on actual works. In this way, the state government is successfully trying to reach the last mile of development in Maharashtra by timely and full utilization of central funds.