Maha Finance dept bans purchases over Rs 50,000

In a bid to avoid "unwanted" and "non-prioritised" purchases made by various departments at the end of the financial year, Maharashtra Finance Ministry has banned procurement of goods worth over Rs 50,000, an official said.
An official from the state Finance department said the purpose behind allocation of funds to departments in the budget is to ensure that spending on essential items is done in a phased and disciplined manner.
"But it has come to light that there are large-scale purchases done in the last three months of the financial year. Therefore, to avoid non-prioritised and unwanted purchases, procurement of goods over Rs 50,000 has been prohibited from January 17 till March 31," a Government Resolution (GR) issued here stated.

The GR further stated that the order will not be applicable to purchases of goods worth Rs 50,000 or below. It will also not be applicable to the Home department, which is required to maintain law and order in the state.