To preserve the momentum of presidency spending, the finance ministry has allowed all ministries to utilise the unspent portion of the funds launched to them in 1 / 4 within the subsequent quarter.
The flexibility might be availed by the ministries and departments within the first quarter of a monetary 12 months after intimating the funds division of the finance ministry. However, the unspent balances from the second and third quarters might be utilised within the third and fourth quarters respectively solely with “formal and prior approval of the expenditure secretary,” the finance ministry mentioned in an workplace memorandum.
“Ministry/Department should not under any circumstance presume prior approval of Expenditure Secretary. This has to be formally obtained prior to utilising the unspent balances. Seeking post facto approval is not an option,” as per the memorandum dated May 25, 2022.
Usually, the ministries and departments are allowed to spend 25% of their funds in every quarter. No greater than 33% and 15% of expenditure of the Budget Estimates throughout a monetary 12 months could be permissible within the final quarter and final month of the monetary 12 months, respectively.
With the capital expenditure typically taking extra time than anticipated, the comfort concerning the utilisation of unspent quantity in 1 / 4 will assist the departments to execute initiatives with out concern of dropping sanctioned funds.
The Centre has raised the capital expenditure goal by 35.4% on 12 months to Rs 7.5 trillion for FY23 to proceed the general public investment-led financial restoration of the pandemic-battered economic system. The capex final 12 months was Rs 5.5 trillion.
The finance ministry has additionally suggested all monetary advisers to make sure that a month-to-month expenditure plan or quarterly expenditure plan (MEP/QEP) monitoring sanctions and concurrent expenditure towards the Budget provisions can be found.
Within the MEP/QEP, it suggested ministries to time bulk expenditure objects of greater than Rs 2,000 crore to month-to-month GST collections and quarterly advance tax funds for clean money administration.
Source: www.financialexpress.com”