The Union Finance Ministry on Friday said that the government will not initiate any new scheme/sub-scheme, whether under delegate power to ministry including SFC proposals or through EFC should be initiated in 2020-21 except proposal announced under PM Gareeb Kalyan Package, Aatma Nirbhar Bharat Abhiyan Package and any other special packages.
The development has come in order to restrict the government's funding during the coronavirus crisis. The government has also asked ministries to also stop sending requests for any new schemes as the funds will only be spent on Prime Minister's Garib Kalyan Package, Aatma Nirbhar Bharat Abhiyan Package or other special packages.
"In-principle approval for such schemes will not be given this financial year. Initiation of new schemes already appraised/approved will remain suspended for one year till march 31, 2021 or till further orders whichever is earlier," the government said.
According to an office memorandum of the department of expenditure in the Finance Ministry, the changes has been made as there is a need to use resources prudently in accordance with emerging and changing priorities.
Despite the new economic packages announced by the Centre over last couple of months, the expenditure department has been flooded with requests from ministries seeking ain-principle' approvals for new proposals and schemes.
As per the finance ministry's decision, even approved schemes up to Rs 500 crore will remain suspended in FY21 or till further orders, whichever is earlier.
However, all ongoing schemes whose continuation in current fiscal got approval from the finance ministry in January will continue to operate till March 31, 2021 or till the date 15 Finance Commissions recommendations come into effect, whichever is earlier. The continuation of these schemes will be based on outcome review based on the evaluation.
The continuing schemes will need to be appraised and approved further for the period of 2021-22 and 2025-26 after 15th Finance Commission's recommendations are accepted and resource position of public exchequer is clear, the finance ministry office memorandum has said.
Finance ministry has decided not to release any funds for scheme this year that are not in conformity to its above guidelines. No budgetary provisions will be made available by re-appropriation to such schemes.
An exception to the new austerity measure of the finance ministry can only be made with its specific approval.
(With inputs from IANS)
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