Central government ministers to have greater financial powers

Central government ministers will now have greater financial powers to clear projects, which will help speed up decision-making and project clearances.

The Minister-in-charge of the administrative ministries can now approve non-plan schemes/projects costing less than Rs 500 crore compared with Rs 150 crore limit earlier.

Finance Minister will have the financial authority for approving scheme/projects having financial implications of Rs 500 crore and above and upto Rs.1000 crore.

Only proposal having financial limits of Rs 1000 crore and above will require approval of the Cabinet/Cabinet Committee on Economic Affairs.

Financial limits regarding appraisal and approval of increase in cost estimates have also been revised. Increase in cost upto 20% of the firmed up cost estimates can now be appraised by the financial adviser and approved by secretary of the administrative Department, if the absolute cost escalation is upto Rs.75 crore.

In case the escalation is more the administrative minister-in-charge can clear the same.

“This is expected to expedite appraisal and approval process in the Central Government Ministries/Departments,” the finance ministry said in a statement.