BHUBANESWAR: The state government has modified the financial powers of the chief minister, ministers, secretaries and heads of departments in order to ensure greater efficiency and transparency.
As per amendments made to Delegation of Financial Power Rules, 1978, the chief minister can approve and sanction up to Rs 100 crore each for expenditure on goods, consultancy and outsourcing services. The cabinet headed by the chief minister will have to take a decision on expenditure above Rs 100 crore.
A minister of an administrative department will have the power of approval and sanction of expenditure on goods up to Rs 50 crore, and consultancy and outsourcing services up to Rs 10 crore each.
The secretary of a department will have the power of approval and sanction of expenditure on goods up to Rs 20 crore, consultancy and outsourcing services up to Rs 3 crore each while the head of a department can sanction expenditure on goods up to Rs 10 crore and consultancy and outsourcing services up to Rs 1 crore each.
An official memorandum issued by the Finance department said, the recommendation of department-level procurement committee will be required if any administrative department goes for procurement of goods (above Rs 25 lakh and below Rs 10 crore), procurement of consultancy services (above Rs 5 lakh and below Rs 1 crore) and outsourcing of services (above Rs 5 lakh and below Rs 1 crore) at the department level.
Preferences, relaxations, concessions and special dispensations in purchase of goods from local micro and small enterprises will be regulated as per guidelines issued by MSME department from time to time.
However, the Finance department has made it clear that the recommendation of department-level or HoD-level procurement committee is not required for procurement of goods up to Rs 25 lakh, procurement of consultancy services up to Rs 5 lakh and outsourcing services up to Rs 5 lakh at administrative department level or head of department level.
“In such cases, procurement can be done with the approval of the secretary of the department or head of department concerned or of any other competent authority, as the case may be,” the memorandum stated.
Pertaining to ‘law charges’, the administrative departments will have full power to sanction funds for decree issued by competent civil court in land acquisition matters and arbitral awards related to works contract, subject to budget provision, without the prior approval of the Finance department, it added.