Departments asked to use Cash Management System for effective budget monitoring in Odisha
BHUBANESWAR: After the appropriation of Budget 2022-23, the State government has asked important departments to focus on timely spending of grants through Cash Management System (CMS), an online module developed for effective monitoring of expenditure patterns.
In a resolution issued recently, the Finance department advised 20 other departments to strictly follow the procedures outlined while releasing grants not only under Administrative and other Expenditure and Programme Expenditure (State Sector Schemes, Central Sector Schemes, Centrally Sponsored Schemes) taken together but also under Programme Expenditure.
Six departments - Works, Housing and Urban Development, Water Resources, Rural Development, Forest, Environment and Climate Change, and Agriculture and Farmers Empowerment have been asked to incur expenditure to the extent of 25 per cent, 15 per cent and 20 per cent of the gross provision in the first, second and third quarter respectively, taking into consideration their working season.
The other 14 departments will have to aim at achieving an expenditure level of 15 per cent, 15 per cent and 30 per cent of the gross provision as per their quarterly target. Failure to reach the prescribed level of expenditure up to the end of the third quarter, which is around 60 per cent of the gross provision made in the Budget Estimate for 2022-23 will result in the resumption of the shortfall by the Finance department, the resolution stated.
Principal Secretary, Finance Vishal Kumar Dev has prescribed a set of guidelines with limits of expenditure indicated in the online module for the first three quarters. The limit of expenditure for the fourth quarter (40 per cent of the gross provision in the Budget Estimate) and monthly expenditure for the month of March (15 per cent of the gross provision in the Budget Estimate) provided in the online module is the uppermost ceiling which should not be exceeded in any case.
The Integrated Financial Management System (IFMS) has been enabled in such a way that it will not admit expenditure in excess of 40 per cent of budget provision during the last quarter and 15 per cent in the month of March under any Demand for Grant of the CMS.