Maharashtra Finance Department Tightens Rules For State Expenditure Proposals Amid Austerity Drive

Mumbai: At a time when the state is observing austerity measures, another step has been introduced to curb vague demands for state funds. The Finance Department (FD) on Wednesday put the brakes on the submission of new and renewed expenditure proposals by various departments.

To seek the FD’s nod for expenditure, state departments will now have to submit an abstract of their proposals, according to a circular issued by the department. The circular also prescribes eight formats for different kinds of proposals routed through the FD for scrutiny of budgetary expenditure and fresh approvals.

Most proposals received by FD seeking approvals for schemes, projects and posts lack crucial details and clarity. The department said several proposals fail to explain why they were referred to the FD, causing difficulties in processing them, the circular noted.

Furthermore, incomplete information and lack of clarity often delay approvals. In several cases, proposals are sent back to departments seeking additional details.

The draft suggested by the FD seeks specific information on nine points, including why the FD’s approval is required and whether any comments have been made by the Accountant General (AG) or if any inquiry is underway.

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