Now ministers can approve non-plan proposals of up to Rs 500 crore

Earlier, ministers had power to approve proposals up to Rs 150 crore

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Ministers can now approve non- plan expenditure proposals of up to Rs 500 crore as against the earlier limit of Rs 150 crore, the finance ministry said.

According to the new directives, competent authority to approve scheme/project between Rs 75 crore and Rs 500 crore will be the minister-in-charge of the ministry or department. Earlier, the minister had powers to approve proposals up to Rs 150 crore.

Proposals up to Rs 75 crore can be approved by the secretary of the administrative ministry/department.

In case of non-plan schemes entailing expenditure between Rs 500 crore and Rs 1,000 crore, the competent authority is the minister-in charge and minister of finance.

Expenditure beyond Rs 1,000 crore require clearance of the Cabinet or Cabinet Committee on Economic Affairs.

Making changes in the 'delegation of financial power rules, 1978', the finance ministry's office memorandum said that a three member Committee of Non-Plan Expenditure (CNE) has been constituted with Expenditure Secretary as chairman.

The other members are - CEO of NITI Aayog and Secretary of the Department concerned.

Also, all non-plan expenditure proposals involving expenditure of over Rs 300 crore recurring or non-recurring, on a new service or for expansion of existing services will be required to be submitted to the CNE for appraisal.

The memorandum further said that ministries/ departments "are advised not to incur any expenditure on account of investment in land and building unless schemes/projects are appraised/approved by the competent authority".

Earlier, all non-plan expenditure of over Rs 75 crore were to be submitted to the CNE for appraisal. In the earlier CNE, Secretary of the Planning Commission was one of the member. Planning Commission has now been replaced by NITI Aayog.