Finance Ministry asks ministries to surrender savings of FY21 by March 20

The finance ministry on Tuesday asked departments and ministries to surrender savings, if any, for the current financial year 2020-21 by March 20.

An office memorandum issued by the Budget Division of the Ministry of Finance informed all departments and ministries that the last date for accepting the surrender of savings anticipated in the Grants for 2020-21 has been fixed at March 20, 2021.

"lt is therefore requested that the surrenders of savings under each unit of Appropriation may be sent to this Ministry so as to reach the Budget Division latest by March 20," it said.

The fund if not utilised lapses at the end of March 31 as the new Budget through the Finance Act comes in to force from new financial year which begins on April 1.

While surrendering the savings, the excess or shortfall in recoveries, if any, in the respective Grants against the original estimates of recovery may also be furnished, it said.

"Although under gross system of budgeting, it is not necessary to surrender the recoveries, the excess or shortfall in recoveries is required for a review of the budgetary position with reference to the sanctioned provisions and to arrive at the net amount of surrender during the year," it said.