Finance Ministry has asked departments to keep a watch on their expenditure to maintain fiscal deficit
New Delhi:
In order to keep the fiscal deficit within the target range, the finance ministry has asked ministries and departments to limit their expenditure with the revised estimates.
Communications comes ahead of the Union Budget 2022-23, which is likely to be unveiled on February 1.
In an office memorandum seeking proposals for the third and final batch of supplementary demands for grants, the Department of Economic Affairs under the Ministry of Finance asked ministries and departments to submit their proposals by February 10.
“When processing proposals for supplemental grants, the grant-control authority should always identify available savings within the grantee so as to eliminate wasteful or increased supplemental demands and avoid the possibility of surrender after receiving supplemental grants.” ,” it said.
It added that a proposal for Supplementary Demands for Grants may be moved after a thorough and objective assessment of the additional requirements for funds.
“All ministries and departments have been requested to include the expenditure within the approved revised estimate limits,” it said.
The government has projected a fiscal deficit of 6.8 per cent of gross domestic product (GDP) for the current fiscal ending March 31.
Fiscal deficit is an indication of the government’s borrowing to meet the gap between expenditure and receipts from taxes and other sources.
The memorandum further states that the demand proposal should be made after a thorough review of the savings under the grant.
“In cases where re-appropriation can be made without the need for supplementation as per the existing provisions, no supplementary proposal including the token amount should be proposed.
“Such requirement may be met by re-appropriation of savings after obtaining the approval of the competent authority,” it said.
The cases which would be eligible for inclusion under such demands include those where advances have been granted from the Contingency Fund of India.
In addition, payment against court decree will also be included in cases where the finance ministry has specifically advised to take forward the supplementary demand in the budget session.
The budget session of two phases will start from January 31 and will continue till April 8.
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