Maharashtra Budgeting Gets A Makeover, New Accounting System Goes Live From April 2027

Mumbai: Maharashtra will overhaul the way government expenditure is recorded from April 1, 2027, adopting a standardised budget accounting framework designed to make public spending easier to track and compare.

The state government has approved the uniform object-head structure recommended by the Comptroller and Auditor General (CAG), according to a Government Resolution issued by the Finance Department.

What Changes From April 2027?

The move does not introduce any new government scheme or spending allocation. Instead, it changes the accounting heads under which different types of expenditure are recorded.

The Maharashtra budget accounting system will have 70 object heads covering revenue expenditure, capital expenditure and accounting adjustments.

New categories will separately capture spending on dearness allowance, medical treatment, leave travel concession, training, digital equipment, repairs and maintenance, bank and agency charges, and social security.

Capital expenditure will also be classified under specific heads covering buildings, infrastructure, land, furniture, ICT equipment and intangible assets.

Existing Heads to Be Merged

Several existing expenditure heads will either be merged or reorganised. Overtime allowance, for instance, will come under allowances, while telephone, electricity and water charges will be classified as office expenses.

Computer-related spending will be distributed across relevant categories including digital equipment, office expenses, materials, repairs and ICT equipment.

The government said differences between Centre and state accounting practices had previously made spending comparisons difficult.

Under the revised framework, expenditure on salaries, wages, pensions, subsidies, scholarships, interest, vehicles, infrastructure, investments and loans will follow standardised classifications.

All departments have been directed to use the revised heads while preparing Maharashtra Budget 2027-28 estimates.