The funds will be used for basic support like supplying water tankers and other programmes to be undertaken to tackle water scarcity till June," a government official said.
The state cabinet approved temporary revision by Rs 2,000 crore.
It will make available Rs 2,150 crore funds, which will be used to cater to the demands of 151 drought-hit tehsils of Maharashtra.
"A sizeable portion of these funds will be utilised for financial disbursement to farmers, who have lost their crops," it added.
The cabinet also cleared proposals to increase the funding for cotton mills in the state.
The cabinet also decided to launch the Chief Minister Cattle Health Scheme, under which 349 mobile veterinary hospitals will be set up.
Earlier, the ration of sharing cost for setting up the cotton mill by share-holders, state and bank loan was 10:30:60.
It means members have to raise 10 per cent funding of the total cost, followed by the state government contributing 30 per cent and loan component was 60 per cent.
The cabinet also decided to take action against Pune-based Spicer Adventist University as alleged irregularities were found in its admission procedures.
The cabinet also approved a proposal to implement the Centre-sponsored Gram Swaraj Abhiyan, for schemes, including electrification, supply of LPG cylinders and providing insurance policies, among others, in rural areas.