Spendthrift ministries get a scolding

'Don’t spend more than the allocated funds,’ finance ministry tells overspending ministries and departments

GN Bureau | April 28, 2010



The finance ministry has directed all secretaries to the government of India to ensure that their ministries or departments spend no more than their authorised allocation as passed by the Parliament,
“The public accounts committee (2008-09) has observed that some ministries and departments of the central government continue to display indifferent attitude towards rules laid down for containing the expenditure within the authorised limits,” Sushama Nath, expenditure secretary, finance ministry said in a note circulated on Monday.

Special attention must be given to the department of economic affairs, ministry of defence, ministry of railways, company affairs, and ministry of mines so that the phenomena of excess expenditure is not repeated, she wrote.
With the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 in operation, spending within the allotted budget is all the more necessary and stringent steps must be taken by the concerned secretaries to ensure financial discipline.

Under various sections of Rule 52 of the General Financial Rules, departments of the central government shall be responsible for the control of expenditure against the sanctioned grants. “The control shall be exercised through the heads of departments and other controlling officers,” the note said.
It further says that no expenditure shall be incurred which may exceed the total grant authorized by the Parliament, except in exceptional circumstances. The grants can be exceeded after obtaining a supplementary grant or an advance from the contingency fund.

The letter dated 25 Jan, 2010 recommends that stern action must be taken to deal with cases where slackness is noticed and where prescribed financial rules are flouted. Instructions were issued to all financial advisors on October 26, 2009 where the committee asked the finance ministry to rigidly enforce the financial rules and procedures to minimise the instances of excess expenditure to the bare minimum.
 

Comments

 

Other News

How to make our cities climate-resilient

Indian cities are growing at a pace that our infrastructure and climate can no longer sustain. This rapid urban sprawl increasingly strains urban systems, overshadowing the severe environmental fallout produced in its wake. The repercussions include Urban Heat Island Effect (UHI), Urban Floods, and many mo

Trump’s China setback pushes US to woo India

A week after Donald Trump’s visit to China – the first by an American president in nine years, US secretary of state Marco Rubio arrived in India on May 23 on a four-day visit aimed at resetting Washington DC’s relations with New Delhi and attending the third Quad ministerial meeting.

EU–India FTA 2026: A high‑stakes prescription for Indian pharma and healthcare

India’s pharmaceutical industry stands as one of the world’s market leaders of generic pharmacy with market valuation of USD 50 billion in 2026. Characterised by high volume, low-cost generic manufacturing, with an annual growth rate of 10-12% primarily propelled by exports and domestic demand,

Legends, vignettes and tales from the freedom movement

Robin Hood of Kathiawar and Other Extraordinary Stories from India’s Freedom Movement By The Paperclip  HarperCollins, 348 pages, Rs 499  

Solicitor General Tushar Mehta tells quirky tales from the world of law

The Lawful and the Awful: Quirky Tales from the World of Law By Tushar Mehta Rupa Publications, 336 pages, Rs 995  

Cabinet meet discussed `Ease of Living`, `Ease of Doing Business`

The Council of Ministers has deliberated upon valuable perspectives and best practices relating to boosting ‘Ease of Living’ and ‘Ease of Doing Business’, prime minister Narendra Modi said on Friday.   As he shared details of the Council meeting held the d





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter