New Delhi: Keeping in view the situation arising out of COVID-19 and the expected liquidity position of the government, the Finance Ministry has ordered various Central Ministries, Departments and Institutions to cut their expenditure by 20 per cent.
Accordingly, the Department of Economic Affairs placed “Revised treasury control based expenditure management in respect of the second quarter of 2021-22” in an office memorandum.
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“Existing guidelines for expenditure control have been reviewed. Keeping in view the situation arising out of COVID-19 and the expected liquidity position of the Government, it is considered necessary to regulate the Quarterly Expenditure Plan (QEP) / Monthly Expenditure Plan (MEP) for the second quarter (July-September 2021-22) is. , said the memorandum issued earlier on June 30.
The measure exempts 16 important ministries, departments and expenditure heads, including health.
read full memorandum here
The Supreme Court, both the Houses of Parliament, the Vice President’s Secretariat and other ministries, departments and institutions including employees, families and allowances of the President have been directed to limit the overall expenditure within 20 per cent of the Budget Estimates 2021-22.
Under the order, 101 departments have been divided into two categories A and B.
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There are 16 ministries in Category A, including the Ministry of Health, Ministry of AYUSH, Department of Pharmaceutical and Health Research, Ministry of Defense Pensions and Railways, which do not face the deduction.
Advising the Ministries/Departments to strictly adhere to the guidelines and regulate expenditure accordingly in the current financial year, the memorandum stated that any deviation from these guidelines would require prior approval from the Ministry of Finance.
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