Union Government enhances Financial Powers of Ministries, Departments

The Union Government has decided to enhance financial powers of its Ministries, Departments for appraisal and approval of Non-Plan Schemes or Projects.
In this regard, Union Finance Ministry has issued a notification in order to expedite appraisal and approval process in the Union Government Ministries and Departments.
As per the revised delegation by Union Finance Ministry

  • The Committee on Non-Plan Expenditure (CNE) will now appraise proposals involving expenditure of 300 crore rupees and above. The earlier this limit was of 75 crore rupees.
  • The concerned Ministry or Standing Finance Committee of the Ministry will now appraise Non-plan Schemes and projects  involving expenditure less than 300 crore rupees.
  • The Minister-in-charge of the administrative Ministry now can approve Non-Plan schemes costing less than 500 crore rupees. Earlier this limit was of 150 crore rupees.
  • Scheme or projects having financial implications of 500 crore rupees and above and upto 1000 crore rupees will be approved by Union Finance Minister.
  • The Union Cabinet or Cabinet Committee on Economic Affairs will final the competent financial authority for proposal having financial limits of 1000 crore rupees and above.
  • The Financial Adviser now can appraise upto 20% increase in the firmed up cost estimates.
  • If the absolute cost escalation is upto 75 crore rupees it has to be approved by Secretary of the concerned administrative Department.
  • In case the absolute cost escalation is above 75 crore rupees, then the Administrative Minister-in-charge will approve it.



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