Finance Ministry asks Ministries, Departments to submit proposals for additional expenditure

Our Bureau New Delhi | Updated on December 29, 2020

The Finance Ministry has invited proposals from various Central government Ministries and Departments for additional expenditure through second and final Supplementary Demands for Grants (SDG).

The Second SDG will be presented during the Budget session of the Parliament likely to start from January 27.

In an Office Memorandum (OM), the Finance Ministry said: “All the Ministries/Departments have been requested to contain the expenditure within the approved Revised Estimate (RE) ceiling.” Though the exact details about the RE will be known in the Budget FY2021-22, it is expected that many Ministries and Departments will have to contain with lesser amount than what was allocated in Budget FY2020-21.

The OM has asked Central Ministries/Department to send proposals related to five types of cases. The first category belongs to advances from the Contingency Fund. The second category is about payment against court decrees which cannot be postponed. The third category is related to additional funds immediately required, which can be met by re-appropriation of savings in the grant but require prior approval of the Parliament. The fourth category includes cases where the Finance Ministry has specifically advised to propose Supplementary Demand in the Budget session. The fifth category refers to cases where additional expenditure has been allowed.

In the light of the observation of Public Accounts Committee, the Finance Ministry has reiterated “all the Ministries/Department may avoid pitfalls in expenditure, take all requisite measures, including use of electronic systems, to ensure proper planning and monitoring of expenditure vis-à-vis voted grants.”

Published on December 29, 2020

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