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.
Month: Current Affairs - July, 2016