State govt lays down conditions for use of budgetary funds

APPROVAL OF FINANCE DEPARTMENT NEEDED FOR NEW ITEMS, BUYING NEW VEHICLES

LUCKNOW: The state finance department has laid down certain conditions for the use of budgetary funds.

The move comes a week after the state legislature’s nod was sought for allocations in the annual budget for 2022-23.

With only nine months left to carry out budgeted expenditure for 2022- 23, the departments will have to expedite implementation of various schemes in the coming months.

Additional chief secretary (finance) Prashant Trivedi, in an order issued on Tuesday, asked the departments to ensure that prior approval of the state finance department was sought while releasing sanctions for “new items of expenditure, shares capital and, loans and advances and buying new vehicles.”

The order said the state cabinet’s approval will have to be sought for all the projects involving a cost of Rs 200 crore or more.

The financial sanctions for new construction work of up to Rs 2 crore will be released in one instalment.

It pointed out that the first instalment of the new construction work will be issued with approval of finance department.

The financial sanctions should be released in two instalments for construction work of more than Rs 2 crore to Rs 10 crore.

It further said funds for the next two months should be released if the work executing agency has used 75% of the funds already released. In case of construction projects of up to Rs 10 crore, the financial sanctions may be released in four instalments of 25% of the construction cost.

For over Rs 50 crore construction projects, a government agency should be selected for the work with the approval of the minister incharge.

It said for projects of more than Rs 50 crore, the work should be carried out through the public works department in EPC ( engineering, procurement, construction) mode by inviting open tenders.

In case of centrally sponsored projects, the state’s share should be released after confirmation of the arrival of central funds.