Govt tells depts to not wait for end of financial year for project approvals

New Delhi: The Delhi government has asked its agencies to ensure their expenditure is evenly spread out throughout the year in order to end the practice of departments rushing to spend their allocated funds at the end of the financial year

New Delhi: The Delhi government has asked its agencies to ensure their expenditure is evenly spread out throughout the year in order to end the practice of departments rushing to spend their allocated funds at the end of the financial year. The government has also warned departments that if expenditure proposals are not sent in a timely and uniform manner, they will be pushed to the next financial year.

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A senior official explained that the delayed expenditure proposals leads to several thousand crores of rupees of government money lying unused, and getting carried to the next year. And then the same cycle repeats year after year.

An office memorandum was issued by the state finance department on March 17, and it is now being sent to all departments, companies and agencies.

“Attention of all departments is invited to the need for ensuring that expenditure is evenly spread throughout the financial year. Rule 62(3) of GFR, 2017 stipulates in unambiguous terms that rush of expenditure, particularly in the closing months of the financial year, shall be regarded as a breach of financial propriety and shall be avoided,” read the order issued by special secretary (finance) Prince Dhawan.

GFR, 2017 is the general financial rules issued by the Union finance ministry and rule 62(3) directs financial advisers of the ministries or departments to ensure adherence to the stipulated monthly expenditure plan and the guidelines issued by the budget division from time to time.

Dhawan said the late filing of expenditure proposals leaves little time for the finance department for detailed scrutiny of the financial demands raised by departments.

“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. Inevitably, the departments seek revalidation of expenditure sanctions; local bodies/grantee institutions seek permission to utilise unspent balances in the subsequent financial year in respect of sanctions accorded in the previous financial year,” the order stated.

The finance department has set a deadline of March 25, after which, it said, all proposals will be accepted only in the next financial year, which starts from April 1.

“To avoid this situation, all the departments are advised that expenditure proposals requiring the concurrence of the finance department should be submitted latest by March 25, 2021. Proposals received after the due date shall be considered only in the next financial year,” the order said.