Finmin order to curb Q4 spending binge to aid in battle against deficit
In November, the ministry had issued a circular that funds under grants-in-aid will not be released unless the state/organisation produces utilisation certificates. On the non-Plan side (where the scope for control is far more limited as the head includes salaries, interest payments, routine unavoidable expenses and subsidies) too, the expenditure department has informally asked ministries to cut expenses wherever they can. In May, the department had mandated a 10% cut in non-Plan spending. The Kelkar committee had proposed savings of R20,000 crore on the expenditure front.
“The aim is to save as much as possible. Given the Plan spending budget of R5,21,025 crore, even 8-10% savings will be substantial,” said an official. The budgeted growth in Plan expenditure was 22.1%. During April-November, spending on this head grew just about 10%. This partly explains why the April-November fiscal
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