NEW DELHI: Delhi government’s finance department has introduced a new directive requiring departments and autonomous bodies to submit two certificates before granting administrative approval for any budgetary expenditure.
The move comes in response to growing concerns about the creation of committed liabilities in the absence of adequate funds, which has led to pending works and financial inefficiencies. Under the new guidelines, expenditures will be subject to clearance from the Finance Secretary before proceeding.
The finance department has emphasised that no liabilities should be committed unless the relevant head of account has sufficient funds allocated for the current financial year.
Officials have pointed out that this latest directive contradicts the financial powers previously granted to departments, which allowed them to approve certain expenditures independently. According to the finance department’s order, it was observed that many departments issued administrative approvals and expenditure sanctions for works and projects without ensuring that adequate funds were available for the specific financial year.
The Finance Department’s new directive clarifies that all departments and autonomous bodies of the Government of NCT of Delhi must ensure that no committed liabilities are created unless funds are available for the current financial year.
In case of any expenditures that could lead to liabilities in subsequent years, departments must obtain prior concurrence from the Finance Department before proceeding.
Additionally, the order stresses that the heads of autonomous bodies and grantee institutions must adhere strictly to these new instructions when granting administrative approval and financial sanctions related to the government grants or loans.