A damning report from the Comptroller and Auditor General of India (CAG) has exposed severe financial mismanagement within the Maharashtra government. Several key departments have failed to submit mandatory Utilization Certificates (UCs) for grants-in-aid amounting to a staggering sum, even as they indulged in a last-minute spending rush at the close of the fiscal year.
Mounting Pile of Unaccounted Funds
The CAG report, which was tabled on the final day of the state legislature's winter session, highlights a critical lapse in financial governance. As per the Bombay Financial Rules of 1959, departments must submit UCs to confirm that grants have been used for their intended purposes. The non-submission of these certificates creates a significant risk that the massive amounts reflected in the finance accounts may never have reached the intended beneficiaries.
The scale of the default is monumental. As of March 31, 2025, UCs worth over ₹1.77 lakh crore related to 52,876 cases were outstanding. While the government managed to clear UCs for ₹1.37 lakh crore across 40,047 cases during the 2024-25 fiscal year, the backlog remains alarmingly high.
Top Departments with Pending UCs
The audit pinpointed the major defaulting departments, led by Urban Development. The list of top offenders includes:
- Urban Development Department: ₹11,040 crore pending
- Planning Department: ₹5,805 crore pending
- Water Resources Department: ₹3,602 crore pending
- Housing Development Department: ₹2,839 crore pending
- Social Justice and Special Assistance Department: ₹2,640 crore pending
The Year-End Spending Spree
Compounding the issue of unaccounted funds, the CAG flagged a troubling pattern of expenditure. In clear contravention of the Bombay Financial Rules, which advise against bunching up spending at the end of the fiscal year, numerous departments went on a financial sprint in March 2025.
The report states that 18 departments incurred expenses exceeding ₹100 crore in March alone, accounting for more than a quarter of their annual spending. This practice undermines prudent financial planning and raises questions about the efficiency and transparency of fund utilization.
Departments with Sharpest March Expenditure
The CAG data reveals which departments were most aggressive in their year-end spending surge:
The Housing Department recorded the most dramatic surge, with a shocking 90% of its total annual expenditure happening in March. It was followed closely by the Environment and Climate Change Department at 77%. The Planning Department spent 65% of its annual budget in the last month, while the Minorities Development Department and the Tourism and Cultural Affairs Department recorded 53% and 50% of their yearly spending in March, respectively.
Implications and Call for Accountability
This CAG report paints a picture of systemic financial indiscipline. The dual issues—massive pending Utilization Certificates and reckless year-end expenditure—point to a failure in both accountability and budgetary control. The lack of UCs for such colossal sums means taxpayers have no guarantee that public money was spent correctly. Meanwhile, the spending rush suggests possible attempts to exhaust budgets without proper planning, potentially leading to wasteful or suboptimal use of resources.
The findings necessitate urgent corrective action from the state government to enforce fiscal responsibility, ensure timely submission of financial documents, and adhere to rules designed to prevent last-minute financial scrambles. Transparency in the use of public funds is paramount for governance.
