Mumbai, Sep 17: The Maharashtra government has set up a high-level committee headed by veteran economist Dr Vijay Kelkar to strengthen the state’s finances, improve revenue generation and create a more sustainable framework for public spending.

Named the Maharashtra Sustainable Public Finance Committee, the panel has been constituted with the broader objective of improving the state’s fiscal position while supporting its long-term development plans. The decision was announced by Chief Minister Devendra Fadnavis.

The committee will examine ways to increase the state’s own tax and non-tax revenues. It will also look at measures to reduce revenue leakages, streamline rates, fees and concessions, and identify new or underutilised sources of income.

A key focus will be on making public spending more efficient. The panel is expected to examine how government resources can be used more effectively while creating greater financial space for investment in infrastructure, human-resource development, water security, urban development and energy transition.

The move comes as Maharashtra seeks to balance rising committed expenditure, including salaries, pensions, interest payments and social welfare spending, with the need to maintain investment in development projects. The government has indicated that strengthening its revenue base is important for managing these competing financial requirements.

The committee will be headed by Vijay Kelkar, former Union Finance Secretary and former chairman of the 13th Finance Commission. Other members include economist Prof Kartik Muralidharan, former Maharashtra Chief Secretary Dr Nitin Kareer, former RBI Deputy Governor T Rabi Sankar and economist Dr Ashima Goyal.

The initiative is also linked to the state’s ‘Developed Maharashtra @ 2047’ vision, which sets long-term economic milestones, including a target of reaching a $1 trillion economy by 2030 and a $5 trillion economy by 2047.

For Maharashtra, improving fiscal capacity will be important for sustaining investment in roads, urban infrastructure, water systems, energy and other areas that support economic activity. A stronger revenue base could also provide greater flexibility for financing development projects and improving public services.

The panel’s recommendations are expected to provide a framework for improving revenue mobilisation and expenditure management while supporting Maharashtra’s broader economic ambitions. The focus will now shift to the measures proposed by the committee and how they can be implemented across the state.