NEW DELHI: The finance ministry has asked ministries and departments to try and weed out 'inflated' demands while processing their proposal for additional grants. The economic affairs department of the Finance Ministry in an official memorandum has instructed other ministries and departments to identify savings from already authorised grants.
The finance ministry note has been issued as the ministry is planning to table the request for additional grants in parliament. When demand for grants proposed in the budget falls short of the expenditures incurred by the different ministries, the government prepares additional or supplementary grants and seeks the parliament's approval for the same.
In the official memorandum issued on Monday, the finance ministry has said: "The supplementary demand should be sought for the minimum necessary amount after a thorough review of the savings within the grant."
The note also advises the ministries to prioritise expenses while proposing additional demands. It says the additional demand for funds should be made in cases of payments against court orders (which cannot be postponed) or in cases where advances were made from the Contingency Fund of the government.
The note also exhorts all ministries to use all measures including use of electronic systems to ensure proper planning and monitoring of their expenditure.
The government has been very conscious about keeping its revenue expenditure under control despite a surge in tax collections. Of the Rs 32 lakh crore budgeted in the current financial year as revenue expenditure, the government has so far spent Rs 11.4 lakh crore or 35.6% of the budget target. Last year during the same period, the government had spent Rs 11.1 lakh crore under revenue expenditure.