Delhi govt cautions against expenditure proposals in last leg of FY

Delhi government warns departments against last-minute proposals to ensure proper fund utilization before the budget presentation by March 23.

New Delhi: The Delhi government has cautioned its departments against a rush of proposals in the final month of the financial year, as it leaves little time for examining such expenditures and ensuring proper utilisation of funds, officials said on Thursday.

The Finance Department directed all departments to ensure that spending is evenly distributed throughout the financial year. (Representative photo)

In a communication issued on Wednesday, the Finance Department directed all departments to ensure that spending is evenly distributed throughout the financial year. It comes at a time when the Delhi government is likely to present the state budget by March 23.

The department cited General Financial Rules 2017 Rule 62(3), which states that a rush of expenditure, particularly in the closing month of the financial year, should be treated as a breach of financial propriety and must be avoided.

“Receipt of the proposals at the fag end of the financial year leaves little time for the examination of proposals. Besides, departments/agencies, too, do not have sufficient time to ensure proper utilisation of funds,” the communication stated.

It also noted that departments often seek revalidation of expenditure sanctions, while local bodies request permission to utilise unspent balances in the subsequent financial year for sanctions granted in the previous year.

Departments have been advised to submit expenditure proposals requiring Finance Department concurrence for 2025–26 by March 23. Proposals received after this date will be considered only in the next financial year, officials said.

Meanwhile, Delhi is considering presenting a “green budget” this year to integrate environmental concerns into the city’s development.

Gupta, who also holds the finance portfolio, had presented a budget of ₹1 lakh crore for 2025–26 — 31% higher than the previous year.

Key allocations included ₹1,000 crore to improve transport links in Delhi-NCR, ₹5,100 crore for a proposed women’s welfare scheme offering ₹2,500 per month to eligible beneficiaries, ₹2,144 crore to strengthen healthcare under Pradhan Mantri Jan Arogya Yojana, and ₹1,000 crore for education.