Uncertainty has continued over the long-term allocation of Maharashtra’s finance portfolio as preparations for the 2026–27 state budget enter a critical phase. While the responsibility of presenting the budget has been assigned to the Chief Minister, it has been indicated that this arrangement is temporary and does not represent a permanent change in portfolio distribution within the ruling alliance.
The decision for the Chief Minister to oversee the finance department has been attributed to the limited time available before the commencement of the budget session. With preparatory exercises already underway, continuity was considered essential to avoid administrative disruption. It has been conveyed by government sources that the suggestion for the Chief Minister to take charge was placed by alliance leaders and accepted through collective agreement.
It has also been clarified that the finance portfolio, which was earlier part of the Nationalist Congress Party’s allocation, has not formally been reassigned. The current arrangement has been described as an interim measure aimed solely at facilitating the smooth presentation of the budget. A final decision regarding the portfolio is expected to be taken only after the conclusion of the budget session, following consultations among alliance partners.
The groundwork for the upcoming budget had already been laid prior to recent political developments. Mandatory pre-budget procedures had been initiated, and key fiscal directions had been outlined. These inputs are expected to form the backbone of the financial statement to be presented, ensuring continuity in policy priorities despite changes in leadership.
Meanwhile, adjustments within the cabinet have continued, with new responsibilities being allocated to accommodate recent appointments. These changes have been positioned as operational necessities rather than indicators of broader political realignment. It has been emphasised that expertise and familiarity with state finances were key considerations in determining who would oversee the budget exercise.
The fiscal context in which the budget is being prepared has been described as challenging. Rising expenditure commitments and constrained revenue growth have reduced fiscal flexibility. In the previous budget cycle, ambitious economic targets were outlined, and sustaining momentum toward those goals is expected to require difficult decisions.
Sources have indicated that rationalisation of welfare expenditure and increased focus on capital investment are likely to be central themes. With no elections scheduled for the next three-and-a-half years, the government is expected to have greater room to introduce corrective measures. Phased departmental expenditure cuts, improved fiscal discipline, and prioritisation of development projects are expected to be examined as part of a broader effort to strengthen the state’s financial position.
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