‘Don’t initiate new welfare schemes,’ the Department of Expenditure said in an office memorandum. (Representational)

The Finance Ministry asked all the other ministries and their departments Friday to not initiate any new schemes in the current financial year, adding that the resources shall be put to a better use in the wake of the coronavirus crisis in the country.

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“It may be appreciated that in the wake of the Covid-19 pandemic, there is an unprecedented demand on public financial resources and a need to use resources prudently in accordance with emerging and changing priorities,” the Department of Expenditure, which comes directly under the Finance Ministry, said in an office memorandum.

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However, the schemes already announced, like the Pradhan Mantri Garib Kalyan Package, the Aatmanirbhar Bharat Abhiyan package and any other special package will be allocated accordingly, added the Department of Expenditure’s office memorandum.

“No new proposals for a scheme/sub-scheme should be initiated this year (2020-21) except the proposals announced under the Pradhan Mantri Garib Kalyan Package, the Aatmanirbhar Bharat Abhiyan package and any other special package/announcement,” the memorandum added.

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It also added that the schemes which have already been approved in the current financial year will remain suspended till March 31 next year or until further orders. This will also include the schemes for which the in-principle approval has been given.

“No funds may be released for schemes that are not in strict conformity to the instructions…nor should budgetary provisions be made available by re-appropriation to such schemes,” it said, adding that any exception to these guidelines will require approval of the expenditure department.

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The department also added that with regard to the existing ongoing schemes, it has already given an interim extension till March 31, 2021, or till the date the recommendations of the 15th Finance Commission come into effect.