Introduction: The hospital's pharmacy is one of the most heavily used therapeutic services and one of the few places where a significant amount of money is spent on recurrent purchases. This underlines the need of strategically planning, creating, and arranging the pharmacy to ensure effective clinical and administrative services. Materials and Methods:Inventory control techniques like ABC, VED and ABC-VED matrix analysis were used to evaluate the annual drug expenditure at drug store of Government Medical College & Hospital Jalgaon for the financial year 2019-20. Results:Total number of drugs in inventory in Government Medical College & Hospital Jalgaon in the year 2019-20 were 334 and the annual drug expenditure was 54040462/-. Category A comprised of 49 drugs (14.7%) for which annual drug expenditure was 37286500/- i.e. 69%. 87 drugs (26%) accounting to 11324859/- (20.96%) were classified as category B drugs. Category C drugs included 198 drugs comprising 59.3% of total inventory and consumed 5429103/- i.e. 10.05% of total annual drug expenditure. 39 drugs (11.7%) were classified into vital/V category which accounted for 15257089/- i.e. 28.23% of annual drug expenditure, while essential/E category included 127 (38%) drugs for which 30161684/- (55.81%) was incurred for their procurement. 168 (50.3%) drugs accounting to 8621689/- (15.95% of total annual drug expenditure). Conclusion:The application of inventory control strategies such as ABC, VED, and the ABC-VED Matrix will help in significant improvements in patient care.