Centre tightens rules of grant allocation for transparency, efficiency

The Department of Expenditure order vouches for more effective cash management and bring more efficiency in public expenditure management

The government has enforced new rules that will change the operating procedure for Centrally Sponsored Schemes (CSS). The  new rules will tighten the procedure for grant allocation and increase the scrutiny on utilisation of funds disbursed, according to report in the Economic Times .

The Department of Expenditure order, dated March 23, vouches for “more effective cash management and bring more efficiency in public expenditure management”, said the report.

From July 1, 2021, all the state will have to set up a Single Nodal Agency for each Centrally Sponsored Schemes. The states will have to open with an account in a commercial