The Finance Ministry has asked all ministries and departments to seek prior approval before initiating any new scheme as the Budget comes closer. However, this will not apply to the project announcement made in this year’s Budget.
The secretary of each administrative department has to clear any scheme involving the cost of up to Rs 100 crore. For project cost between Rs 100 crore and Rs 500 crore, the approval has to be sought from the minister. The step is aimed at rationalising schemes and finances involved in them.
For schemes/projects costing between Rs 500 crore and Rs 1,000 crore, the projects have to be approved by the minister in the respective ministry and the finance minister. For those above Rs 1,000 crore, the clearance has to come from the Cabinet.
Over the years, the ministries have started operating small and multiple schemes which spread resources too thinly to realise any meaningful outcomes. In order to ensure efficient management of public expenditure at all times, it is directed that henceforth, no new scheme or sub-scheme will be initiated without the prior in-principle approval of the Department of Expenditure (DoE), Ministry of Finance.
The DoE reserves the right to merge, restructure or drop any existing scheme or sub-scheme in consultation with the administrative department concerned to enhance efficiency and improve economies of scale in the execution of government programmes.
While submitting proposals of continuation of ongoing schemes, a careful rationalisation must be done through merger and dropping of redundant scheme.