Fadnavis Cabinet Approves 6th Finance Commission; Key Recommendations Inside

Mumbai: The Maharashtra Cabinet approved the creation of a sixth Finance Commission on February 18, 2025.

Chief Minister Devendra Fadnavis was given authority by the Cabinet to suggest to state Governor C.P. Radhakrishnan the names of the Finance Commission's chairman and members.

Maharashtra Government Approves 6th Finance Commission

The Maharashtra government has officially approved the Sixth State Finance Commission, which will assess the financial health of municipalities and panchayats. The Commission will offer recommendations on the fair distribution of revenue raised through taxes, duties, tolls, and fees, collected by the state. Its primary focus will be on strengthening the financial standing of local self-government bodies, improving their financial management, and ensuring equitable distribution of resources.

Finance Commission Possible Recommendations

The Finance Commission will determine the share of the net revenue raised by the state that should be allocated to municipalities and panchayats. This will be based on provisions under Parts 9 and 9-A of the Indian Constitution. 

The Commission will also recommend the taxes, duties, tolls, and fees that municipalities should appropriate or share with panchayats. Additionally, it will establish guidelines for the grant-in-aid from the state’s consolidated fund to local bodies, aiming to bolster their financial stability. The recommendations will rely heavily on population statistics from the 2011 Census.

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Maharashtra Gov Solar Power Project 

In addition to the Finance Commission's recommendations, the Cabinet has approved a significant move to improve energy efficiency in the Krishna-Koyna Lift Irrigation Scheme. The project will include the installation of a solar power system for the Mhaisal Lift Irrigation Scheme, which is part of the Krishna-Koyna project. 

The solar initiative is expected to meet the irrigation system's annual electricity needs of around 398 million units, saving substantial electricity costs. The total cost of this energy-efficient water management project is Rs 1,594 crore.

Krishna Koyna Lift Irrigation Project 

The Krishna Koyna Lift Irrigation Project consists of two schemes: Takari and Mhaisal. The irrigation system starts at the Krishna River in Mhaisal, where water will be lifted in stages to irrigate 1,08,197 hectares across drought-prone regions in Sangli and Solapur districts. With the integration of solar energy, the project will reduce dependency on conventional power sources, thus making irrigation more cost-effective.