Rushing of proposals at fiscal year’s end should be avoided, officials told

The departments have also been advised to send expenditure proposals requiring concurrence of the finance department by March 25.
Image for representational purpose.
Image for representational purpose.

NEW DELHI:  Taking note of rushing of expenditure proposals just before the end of financial year, the special secretary (finance) of the Delhi government has asked secretaries and heads of other departments to avoid the practice stating that last minute ‘rush’ leaves no scope for scrutiny of their plans. The departments have also been advised to send expenditure proposals requiring concurrence of the finance department by March 25.

Proposals received after the due date shall be considered only in the next financial year, said the office memorandum (OM) issued by Prince Dhawan, special secretary (finance) on Wednesday. “Rule 62(3) of General Financial Rules (GFR), 2017, stipulates in unambiguous terms that rush of expenditure, particularly in the closing months of the financial year,  shall be regarded as a breach of financial propriety and shall be avoided,” read the note.

“Receipt of the proposals at the fag end of financial year leaves little time for their examination. Besides, departments or agencies too don’t have sufficient time to ensure proper utilisation of funds. Inevitably, the departments seek revalidation of expenditure sanctions and local bodies or grantee institutions seek permission to utilise unspent balances in the subsequent financial year in respect of sanctions accorded in the previous financial year. To avoid this situation, all the departments are advised that expenditure proposals should be submitted latest by March 25,” says the OM.

Senior government officials, aware of the matter, said that the note must have been issued after receiving expenditure proposals in bulk. “Before the culmination of the fiscal year, approval is taken from the finance department. The examination of any proposal takes time. If all departments send their request at the same time, it becomes difficult to examine them in a short span. The financial matter should be given proper time for assessment,” said an official, requesting anonymity. 

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