Govt’s spending process begins today
For the first time the government’s spending process, linked to the Union Budget, will begin from Saturday (April 1).
This is the result of the decision of the Bharatiya Janata Party-led National Democratic Alliance (NDA) to advance the presentation of the Union Budget to February 1 and ensuring Parliamentary approval in 2016-17 itself.
As a result, the government will be able to initiate its annual spending, particularly on social sector schemes, from April1 instead of the customary date of 1 June — owing to the Union Budget getting Parliament’s nod only in the third week of May earlier.
A finance ministry official, speaking on condition of anonymity, said from April 1 money will be made available to all departments and ministries. “They will not have to wait for it or seek any permission. It is up to them to plan their expenditure. Finance ministry will only keep a tab on the quarterly expenditure norms that they have to follow.”
A road ministry official concurred. “Earlier, we used to plan in April-may and then works used to be implemented from August-september onwards and from January onwards again we would be busy with financial planning. As a result of this, oversight of projects by top executives was not possible. But with the government’s fresh approach, the ministry will get more time for better monitoring.”
“The planning process and implementation is now more streamlined because of early presentation of the Union Budget. It will also help us to work out our finances in a better way,” railways ministry spokesperson Anil Saxena said.
Apart from the infrastructure ministries, the early parliamentary nod to the budget will also give more manoeuvring space to social sector ministries. “The passage of the budget in March means the government can start disbursing money for social sec tor programmes,” a rural devel opment ministry official said on condition of anonymity.
An aviation ministry official who did not wish to be named said it does not help the ministry much. “Budget contains round the-year announcements. A week here and there doesn’t matter For aviation, no such (direct expenditure) schemes are announced and most announce ments are long term in nature.”