Finance Ministry seeks expenditure proposals for supplementary demands

The Finance Ministry has sought expenditure proposals for the first batch of supplementary demand for grants from various ministries while adhering to the spending cut in view of the Covid-19 crisis.

The first batch of Supplementary Demands for Grants for 2020-21 is proposed to be placed before Parliament in the ensuing monsoon session, the Finance Ministry said in an office memorandum.

Monsoon session, the shortest, usually begins in July.

The cases which would be eligible to be incorporated under such demands include those where advances from the Contingency Fund of India have been granted.

Besides, payments against court decree would be included as well in cases where the Finance Ministry has specifically advised moving of Supplementary Demand in the Monsoon Session, it said.

It further said that since the full Budget is available with the ministries and Departments with effect from April onwards, cash supplementary should not be proposed in this batch.

Earlier this month, the Finance Ministry asked all ministries and departments not to initiate any new scheme in the current financial year and said that there is a need to use resources prudently in the wake of the Covid-19 crisis.

However, funds for schemes under the Pradhan Mantri Garib Kalyan Package, the Atmanirbhar Bharat Abhiyan package and any other special package or announcement would be allocated, according to an office memorandum by the Department of Expenditure, which comes under the finance ministry.

Also, schemes that are already approved for the current financial year will remain suspended till March 31 next year or until further orders. This would also include those schemes for which in-principle approval has been given by the department.

According to memorandum, the proposals along with the draft statement justifying Supplementary Demands to be included in the first batch should be forwarded to Budget Division by latest June 29.