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HomeBusinessGovernment spending will increase this quarter, central ministries-departments get big approval

Government spending will increase this quarter, central ministries-departments get big approval

In order to encourage capital expenditure to accelerate economic activities, the Finance Ministry has relaxed the rules related to expenditure in the fourth quarter of the current financial year.

Economic activities have slowed down due to the third wave of the Corona epidemic. In order to encourage capital expenditure to accelerate economic activities, the Finance Ministry has relaxed the rules related to expenditure in the fourth quarter of the current financial year. According to the existing guidelines, all ministries and departments will be able to spend more than 33 percent of the estimated budget in the last quarter January-March 2021 and more than 15 percent in the last month March 2021. The Department of Economic Affairs, under the Ministry of Finance, has said in the Office Memorandum that it has been decided to relax the upper limit of 33 per cent of the estimated budget in the March 2021 quarter.

Relief is available only for this financial year

This decision has been taken by the Ministry of Finance as a one time ie, it is not necessary that the relaxation should continue even further. According to the Office Memorandum issued on 19 January 2021, this decision has been taken with the condition that the ceiling i.e. upper limit of the revised estimate for the financial year 2021-22 has not been increased. According to the Finance Ministry, in the last month of the current financial year, March 2021, there has been a relief in the 15 percent limit of 15 percent of the estimated budget of capital expenditure but the total expenditure should be within the revised estimate.

Relief continues with immediate effect

According to this relief, the Finance Ministry has asked all the ministries and departments to complete the changes in their quarterly and monthly expenditure plans at the earliest. According to the Office Memorandum issued by the Ministry of Finance, this relief has been issued with immediate effect for the current financial year and will continue till further orders.

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