New Delhi: In an effort to boost the freshly struggling economy COVID-19 Golf has relaxed the Ministry of Finance’s spending guidelines to enable ministries and departments to amount to R 000,000 million in capital expenditure in the 2021-22 budget.
According to an office memorandum (OM) issued by the Ministry of Finance, the ceilings and restrictions for monthly / quarterly expenditure (MEP / QEP) do not apply to expenditure under the capitals under the budget.
To enable ministries / departments to accelerate capital expenditure, the cash management guidelines issued by the Ministry of Finance in terms of the OM of 2017 have been relaxed.
“Ceilings and restrictions on monthly expenditure plan (MEP) or quarterly expenditure plan (QEP) and restrictions on bulk expenditure items dated in the OM on 21 August 2017 do not apply to expenditures under the capitals under the budget. This relaxation takes effect immediately and applies to further orders, ”he added.
According to the guidelines, the largest expenditures of more than 2000 million were fixed in the last month of each quarter to use the inflow of direct tax receipts in June, September, December and March. Similarly, large releases of 200 million to 2 000 million were fixed between the 21st and 25th of a month to take advantage of the inflow of the GST. These restrictions have been removed with the latest OM.
The Minister of Finance, Nirmala Sitharaman, announced a sharp increase in capital expenditure in the 2021-22 budget and 5.54 million kr, which is 34.5 percent more than the 2020-21 budget (BE).
“Of this, I have kept an amount of more than 44 000 million in the budget head of the Department of Economic Affairs for projects / programs / departments that show good progress with capital expenditures and need further funds,” she said.
In addition to these expenditures, the government would also provide more than 2 million euros to states and autonomous bodies for their capital expenditure, she said. In the BE 2020-21, the government provided 4.12 million euros for capital expenditure. It was revised upwards to 4.39 lakh crore.
Source: Telangana Today