Due to Corona, most people are cutting their expenses and now the central ministries have also been asked to do the same. The central government on Wednesday asked several ministries and departments to reduce their spending plans by 5 percent in the second quarter of the current financial year 2021-22, July-September 2021. According to the Centre, ministries and departments spend 25 per cent of their annual expenditure in a quarter, which has been asked to increase to 20 per cent this quarter. This step is part of re-determining the priority of spending in the second wave of Corona and it will not affect the entire expenditure. However, it could not be decided yet how much the expenditure would be cut. The budget expenditure for the financial year 2022 has been estimated at Rs 34.8 lakh crore.
Under normal circumstances, departments are allowed to spend about 25 per cent of their budget estimates in the second quarter as per the quarterly and monthly plans approved by the finance ministry. However, some departments are allowed to spend more than 25 per cent in a quarter after prior approval.
Covid-19 News Update: Corona cases increasing once again, more than 48 thousand cases came in 24 hours
Some departments will not be affected
Departments/agencies that have to keep their expenditure within 20 per cent of the budget estimate include Labour, Panchayati Raj, Social Justice, Posts, Telecom, Consumer Affairs, Home, Police, Defense (Civil), Defense (Revenue), School education and higher education. According to an office memorandum issued by the Finance Ministry, a need was felt to regulate expenditure for the July-September 2021 quarter in view of the coronavirus pandemic and the cash availability situation with the government.
However, according to the Ministry of Finance, ministries and departments related to health, agriculture, rural development, railways and roads are playing an important role in the fight against corona virus, due to which this new rule will not be effective on them. Apart from this, interest payment and money given to the states will also be unaffected.
Tata Consumer Products may bring bumper profits to investors, brokerage firm raises target price with ‘Buy’ rating
Some Instructables were released in early June
The order issued by the Finance Ministry regarding expenditure in the second quarter will follow the same instructions as was issued by the Ministry in early June. In early July, the ministry had given necessary instructions to the departments to control expenditure and not to spend on those which were not very important. On June 12, the ministry had asked all ministries and departments to cut non-plan expenditure and 20 per cent reduction in living expenses under its control. This includes overtime allowance, rewards, domestic travel expenses, foreign travel expenses, office expenses, fares etc.
Get Business News in Hindi, latest India News in Hindi, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.