Kasab was lodged in Arthur Road jail, where the trial of 26/11 case also took place, for four years, before he was shifted to Pune's Yerawada jail for execution last November.
Mr Shinde today visited the Arthur Road jail and reviewed the security.
He said the state should spend the money - otherwise payable to the Centre - for prison reforms.
Maharashtra Home Minister R R Patil had written to the Centre saying that state alone should not bear the financial burden for Kasab's security.
Mr Shinde today said he would be visiting all the major jails in the metro cities to review the security, and his next stop would be Tihar in New Delhi.