Thursday 30 June 2016

Union Government enhances Financial Powers of Ministries, Departments

The Union Government on 28 June 2016 revised the financial limits of departments and ministries for appraisal and approval of Non-Plan Schemes or Projects by competent authorities. With this, appraisal and approval process in the Central Government Ministries and Departments will be expedited. As per the revised delegation, the Committee on Non-Plan Expenditure (CNE) will now appraise proposals
involving expenditure of 300 crore rupees and above. The earlier limit for this was 75 crore rupees.
• Non-plan Schemes/projects of less than 300 crore rupees can now be appraised by Ministry or the Standing Finance Committee of the Ministry concerned. 
• The financial power of the Minister-in-charge of the administrative Ministry can now approve Non-Plan schemes costing less than 500 crore rupees. The earlier limit for this was 150 crore rupees.
• Finance Minister shall be competent financial authority for approving scheme/projects having financial implications of 500 crore rupees and above and upto 1000 crore rupees. 
• Proposal having financial limits of 1000 crore rupees and above shall require approval of the Union Cabinet/Cabinet Committee on Economic Affairs. 
• Increase in upto 20 percent cost 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 75 crore rupees.
• And if the absolute cost escalation is above 75 crore rupees, then it will be approved by the Administrative Minister-in-charge.

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