The Maharashtra government has officially approved changes to its government expenditure recording system, with implementation scheduled from April 1, 2027. According to the latest Government Resolution issued by the Finance Department, the state will adopt the 'uniform object-head structure' recommended by the Comptroller and Auditor General (CAG). The revised system will not introduce new spending schemes or allocations but will change the accounting heads under which government expenditure is recorded, ensuring similar types of spending are grouped under common categories. As per the Government Resolution, the changes aim to make it easier to compare government spending in Maharashtra with that of the Centre and other states, addressing the difficulties caused by differences in expenditure classification between the Centre and states. The Finance Department confirmed that differences in the way the Centre and states classify expenditure have made it difficult to compare government spending across different levels of government.
Under the new system, 70 object heads will cover revenue expenditure, capital expenditure and accounting adjustments, as reported by the latest Government Resolution. Several new categories will separately identify expenses such as dearness allowance, medical treatment, leave travel concession, training, digital equipment, repair and maintenance, bank and agency charges, and social security expenditure. Capital expenditure will be recorded under separate heads for buildings, infrastructure, land, furniture and fixtures, ICT equipment and intangible assets. The government has also removed or merged some existing heads - overtime allowance will be included under the broader allowances head, while telephone, electricity and water charges will form part of office expenses. Computer-related expenses will be distributed among relevant heads such as office expenses, digital equipment, materials and supplies, repair and maintenance, and ICT equipment. The revised system will have 70 object heads covering major areas such as salaries, wages, pensions, subsidies, scholarships, interest payments, vehicles, machinery, investments, loans, infrastructure and land. The new classification system is expected to make government accounts easier to track and compare across states and financial years.
The government has directed all departments to use the revised object heads while preparing their budget estimates for 2027-28, according to the latest Government Resolution. The changes are aimed at making it easier to compare government spending in Maharashtra with that of the Centre and other states. Under the revised framework, expenditure on salaries, wages, pensions, subsidies, scholarships, interest, vehicles, machinery, investments, loans, infrastructure and land will follow standardised classifications, ensuring consistent budgeting across all government departments. The new system will make spending on infrastructure, salaries, subsidies or social security more clearly defined and standardised, allowing policymakers and auditors to compare similar expenditure across states and years more effectively.
The move comes amid concerns raised by the CAG over Maharashtra's finances, as reported by NDTV. A CAG report tabled in the state legislature cautioned that the state's fiscal sustainability could come under pressure due to high spending on the Mukhyamantri Majhi Ladki Bahin Yojana, growing off-budget borrowings, mounting liabilities and large amounts of unspent funds parked outside the Consolidated Fund. The audit highlighted that Maharashtra's actual fiscal deficit for 2024-25 breached the FRBM Act's 3% limit, contrary to what the state government reported in its Finance Accounts. The CAG's report on Maharashtra's state finances for 2024-25 also highlighted Maharashtra's growing dependence on off-budget borrowings by various state agencies from government undertakings and funding agencies. The new accounting system is expected to improve transparency and facilitate better spending comparisons across different levels of government.
