Tag: finance department

In various orders on “expenditure management and rationalisation of expenditure” since the Covid-19 outbreak, different directions have been given on any expenditure of Rs 1 crore and above. In an office memorandum issued on June 17 this year, the finance department’s budget division had directed that all the administrative secretaries and heads of departments to obtain relaxation from the finance department for incurring expenditure of Rs 1 crore or more.

In a recent office memorandum, however, the finance department has allowed seeking relaxation through letters instead of files. In the memorandum, the finance department has stated that it was observed that several proposals were being sent to the department for relaxation, which was required only in cases where the expenditure was of Rs 1 crore and above. “These proposals are in turn examined in the finance department, which takes time and delays the process,” it stated.

In a partial modification of the instructions issued on June 17, the office memorandum issued on August 10 stated that it has now been decided that the administrative departments were not required to send files to the finance department for relaxation. Instead, they would approve the proposals at their level and “send a letter on a weekly basis” to the finance department in a tabulated format.

The orders on expenditure management, however, exclude certain expenditures from the necessary approvals, such as expenditure related to salaries and allowances, medical reimbursement, pension of senior citizens and widows.