Expenditure cap norms lifted for DBT schemes

Now, such schemes will not be required to meet condition of cap on expenditure in the last quarter and last month of the year

The finance ministry on Wednesday relaxed restrictions on expenditure for scholarship schemes under the Direct Benefits Transfer (DBT). Such schemes will not be required to meet the condition of cap on expenditure in the last quarter and last month of the year.

According to expenditure management norms, there is a ceiling of 33 per cent on expenditure in the last quarter of the year and 15 per cent on expenditure in the last month.

"All schemes, wherein scholarships have to be paid to the beneficiaries under the DBT mode, are exempted from 33 per cent and 15 per cent restrictions on expenditure, for the last quarter and month of March respectively in the financial year," the finance ministry said in an office memorandum.

The restrictions are imposed to curb rush of expenditure in the last quarter of the year, particularly in March. The decision was taken after the finance ministry received various representations from other ministries seeking exemption from the rule because funds under these schemes are mostly transferred annually.

From January 1, the government is using the Aadhaar-platform to dole under DBT in 43 districts for 34 centrally sponsored schemes in a phased manner. The second phase of the scheme will begin from July 1, covering 78 more districts.