Finance Ministry asks ministries to avoid pitfalls in expenditure

NEW DELHI: Finance Ministry has asked ministries and departments to take all necessary measures to ensure proper planning and monitoring of expenditure.

The Public Accounts Committee ( PAC) had expressed displeasure over the "tepid approach" of the ministries and departments, particularly over bad planning, lack of foresight and ineffective monitoring on the part of Budget controlling authorities while preparing estimates as well as supplementary demands for grants.

It had reiterated the need for "scrupulous scrutiny" of the Budget proposal, rigorous monitoring of the pace of expenditure and strict compliance of general financial rules to eliminate possibility of excess expenditure, underspending and wrongful appropriation.

"In light of the observations of PAC, it is reiterated that all the ministries and departments may avoid pitfalls in expenditure, take all requisite measures, including use of electronic system, to ensure proper planning and monitoring of expenditure vis-a-vis voted grants," the ministry said.

The Finance Ministry suggested this while calling for proposal for the first batch of supplementary demands for grants 2016-17 to be presented to Parliament in the ensuing monsoon session.

It further said the grant-controlling authority must invariably identify savings available within the grant so that the "infructuous or inflated" supplementary demands are weeded out and the eventuality of surrender after obtaining it is avoided.

"The proposal for supplementary demand for grants may be projected after a thorough and objective assessment of additional requirement of funds," it said, adding that the supplementary should be sought for the "minimum necessary amount".