Delhi government eases restrictions on departmental spending

NEW DELHI:  The Delhi government has eased restrictions, which were put on its expenditures after the coronavirus pandemic crisis aggravated in July.  After a review of the outbreak and its impact on economic conditions, the finance department on Tuesday issued a set of guidelines to ‘streamline the process of expenditure proposals’ made by the various departments.

According to the fresh order, for all expenditures up to Rs 1 crore, within delegated power of secretary or head of the department; prior relaxation from the finance department is not required.   If the expenditure proposal is for more than `1 crore, the competent authority—secretary or HoD, will place a cabinet note directly before the council of ministers through the concerned minister. The officials will not need to send the cabinet note to the finance, law, and planning department to seek their ‘views’ anymore. 

The order says if the proposal having financial implication upto Rs 1 crore, not within delegated power of secretary or head of the department (HoD) but the finance department, the competent authority will continue to send the proposal to the finance department for concurrence as per the procedure.
“Finance department, after examination of the proposal, may accord expenditure sanction in case of proposals upto Rs one crore and allow relaxation,” says the order.

In case, the expenditure proposal is for more than Rs 1 crore, for which the power is not delegated with the secretary or head of the department but the finance department, the order says, “Department may obtain the approval of the finance department on file and prepare a cabinet note for placing the matter before the council of minister for obtaining relaxation. Such cabinet notes need not be sent to the finance, planning, and law department to seek their views” 

Deputy Chief Minister Manish Sisodia, who also holds the charge of the finance department, in July had ordered all expenses to be authorised by his department as most expenses were to be focused on fighting the pandemic. In September, the department had withdrawn the said directive, which allowed all department heads or administrative secretaries to incur expenditures as per the budget. However, within a week, the curb was reintroduced given the pressure on resources and for better cash management to deal with the pandemic crisis.

As per the latest order, if a matter requires approval from the council of minister irrespective of the amount, the department will follow the usual procedure. “Seek comments from the finance, law, and planning department. Place the matter before the council of minister for approval as well as relaxation of the expenditure proposed to be incurred as per existing procedure,” reads the order.