18 govt depts asked to spend 20% Budget funds in April-July

Odisha had presented Vote on Account, pegging the total outgo at Rs 76,007 cr while seeking appropriation for Rs 34,829 cr for the first four months of FY15

The state finance department has urged 18 administrative departments to log 20 per cent spending in the April-July period of 2014-15.

Poll bound Odisha had presented a Vote on Account for the fiscal, pegging the total outgo at Rs 76,006.87 crore while seeking appropriation for Rs 34,829.36 crore for the first four months of FY15.

The finance department has notified guidelines under Cash Management System (CMS). The guidelines mandate 18 departments to spend 15 per cent in the first quarter (April-June) and five per cent in July.

The CMS guidelines apply to the departments of school & mass education, ST & SC development, health & family welfare, panchayati raj, industries, energy, textiles & handloom, fisheries & animal resources development, women & child development, higher education, employment & technical education & training, micro, small & medium enterprises (MSME), works, housing & urban development, water resources, forest & environment, agriculture and rural development.

“The quarterly expenditure allocation (QEA) for the first quarter and monthly expenditure plan (MEP) for the month of July should not be modified by the administrative departments without prior approval of the finance department in ways and means branch. The administrative departments are authorised to sanction expenditure under Non-Plan, State Plan, Central Plan and Centrally Sponsored Plan schemed up to the limit of QEA for the first quarter and MEP for the month of July including expenditure for grants and subsidies,” the guidelines stated.

In case of externally aided projects (EAPs) in the pipeline, expenditure should be incurred only if agreement with the donor agency has been signed and the date of effect of agreement has been notified.

While sanctioning funds out of the Vote on Account provision, the administrative departments need to adhere to the stipulations contained in the Model Code of Conduct till completion of the election process and seek the permission of the chief electoral officer, Odisha wherever required.

The administrative departments can sanction expenditure on existing schemes when the scope of the scheme is proposed to be substantially altered or cost estimate of projects/schemes are to be revised only after completion of process of appraisal and approval  by the competent authority.

The CMS was introduced in 2010-11 to ensure even pacing of expenditure within the financial year, reduce rush of expenditure during the last quarter, curb the tendency to park funds outside government account, effectively monitor the quality of expenditure and improve quality of expenditure.

According to CMS norms, the departments should spend at least 60 per cent funds by the end of December in any fiscal. While the administrative departments are free to enhance spending in the first three quarters, they are required to cap the expenditure at 40 per cent in the last quarter and 15 per cent in the last month (March).