Maharashtra Cabinet Approves Finance and Planning Department Restructuring to Improve Efficiency

The Maharashtra Cabinet has approved a major restructuring of the Finance and Planning departments to make government financial management and policy planning more efficient. The decision was taken during a Cabinet meeting chaired by Chief Minister Devendra Fadnavis on Tuesday.

Under the new arrangement, several budget-related responsibilities and 28 posts currently handled by the Planning Department will be shifted to the Finance Department. The restructuring aims to create clearer responsibilities between the two departments and improve the way financial and development-related decisions are managed.

Budget Responsibilities to Move to Finance Department

The restructuring comes in response to changes in the national planning system following the replacement of the Planning Commission with NITI Aayog.

As part of the decision, the Finance Department will take charge of several responsibilities linked to budget preparation, fund allocation and financial planning. These include preparing annual programs, publishing program-related documents and coordinating Centrally Sponsored Schemes.

The department will also handle matters concerning statutory development boards, fund statements, fund allocation, re-appropriation of funds and supplementary demands.

The transfer is expected to bring budget-related functions under one department, helping streamline financial decisions and improve coordination across the state government.

Planning Department to Focus on Policy and Development

With its budget-related responsibilities reduced, the Planning Department will now concentrate more on policy monitoring, development planning and reviewing the performance of government programs.

The department will monitor the implementation and outcomes of policies, schemes and programs managed by different administrative departments. It will also review whether government initiatives are achieving their intended objectives.

Another important responsibility will be finalizing priorities for district annual plans submitted by District Planning Committees.

Development Commissioner’s Office to Support District Planning

The Planning Department will continue to function as the office of the Development Commissioner. It will help develop a centralized strategy for implementing schemes and programs included in district annual plans.

The department will also place proposals concerning public-private partnership projects and market borrowings through Special Purpose Vehicles before the appropriate Cabinet committees for consideration.

This approach is expected to strengthen coordination between development priorities and the resources required to implement them.

Review of Major Infrastructure Projects

The restructured Planning Department will also examine proposals for infrastructure projects that involve spending under state and Central government schemes.

It will review projects supported by domestic and international financial institutions and provide its recommendations and observations before further decisions are taken.

This role will help the government assess the financial and development impact of major infrastructure proposals while ensuring that projects remain aligned with broader state priorities.

Greater Focus on Government Scheme Performance

Another key responsibility of the Planning Department will be reviewing the performance of government schemes and programs.

The department will recommend evaluations where required and examine how effectively public resources are being used. This could help identify successful initiatives as well as areas that need improvement.

The department will also remain the custodian of Maharashtra's economic and statistical data. It will continue to publish relevant information periodically to support government planning and decision-making.

Maharashtra Government Seeks Clearer Roles and Better Coordination

The restructuring is aimed at giving the Finance and Planning departments more focused responsibilities. While the Finance Department will take a stronger role in budget management and fund-related matters, the Planning Department will concentrate on policy review, development priorities, scheme evaluation and economic data.

The Maharashtra government's latest decision is expected to support more organized financial planning and improve the monitoring of development programs across the state. By separating budget management from policy and development review, the new structure seeks to make government functions more focused, coordinated and efficient.