Expenditure Sanction Limits May Be Raised

Finance minister Yashwant Sinha is set to overhaul the expenditure framework in the forthcoming Budget by more than doubling the sanction limits of the approval authorities. The move is intended to provide the elusive fiscal stimulus to the economy.

According to senior government officials, Sinha is likely to double the sanction limit of the Public Investment Board (PIB), chaired by the expenditure secretary, to Rs 200 crore and above. At present, the PIB is the appraisal forum for all projects entailing expenditure of Rs 100 crore and more.

The Expenditure Finance Commission (EFC), also chaired by the expenditure secretary, which approves projects requiring funds over Rs 50 crore but less than Rs 100 crore, would be allowed to sanction projects that call for funds of over Rs 100 crore and less than Rs 200 crore.

Similarly, the EFC chaired by the secretary of the administrative ministry would be allowed to sanction projects requiring expenditure of Rs 25 crore and above but less than Rs 100 crore. As of now, they are allowed to approve projects calling for expenditure of Rs 15 crore and above but less than Rs 50 crore.

The proposal to lend more teeth to the various approving authorities was initiated by the Prime Minister