To maintain the economic activity amidst the spike in COVID mortalities, the government on the 22nd of April removed the quarterly and monthly expenditure slabs for various departments. ” To enable ministries/departments to expedite capital expenditure, the cash management guidelines issued by the ministry stand relaxed. Monthly expenditure plan/quarterly expenditure plan ceilings and restrictions on bulk expenditure items referred to in the office memorandum dated August 21, 2017, shall not be applicable for expenditure under the capital heads under the budget,” the finance ministry said. These relaxations shall take immediate effect and shall apply until further orders, it stated.
The bulk expenditure items of more than Rs 2,000 crore were timed in the last month of each quarter to utilize the direct tax receipt inflows in June, September, December, and March. The funds were released within the 17th and 25th of these months. Similarly, big releases of Rs 200 crore to Rs 2,000 crore were timed between the 21st and 25th of a month to take advantage of the GST inflows. These restrictions have been removed.
FY21 received a sum of Rs 4.39 lakh crore. This is revised by 26% for FY22. A sum of Rs 5.54 lakh crore was allocated by the Centre. Finance Minister quoted a sum of additional Rs 44,000 crore for this year to support projects/programs/departments that show good progress on capital expenditure and are in need of further funds
TPT Policy Advocacy and Recommendations
- The economic industry across the globe is gasping for breath. Developing countries such as India are hit harder by the outbreak. Instead of marginalizing funds, the government primarily needs to go to the ground level to identify the companies that are strong enough to survive, firms that demand monetary support to escape the quicksand, and organizations whose survival rates a merely zero.
- The finance department should prioritize the management of the jeopardized health care services in the country above all. It should resource to the development side rather than allocating corpus amounts to the economy. The institutionalization of early warning, emergency planning, preparedness, and quick response should be adopted by the government. Resource allocation and distributive accountability should be patronized by the administration.