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Finmin reimposes spending curbs on ministries, depts for Q2 of FY22

Move made keeping in mind cash position ahead of likely third wave; health, MSME and rural development spared restrictions

Finance Minister Nirmala Sitharaman
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Spending curbs were imposed on ministries and departments last April following a nationwide lockdown to contain the first wave of the pandemic and the subsequent hit to the economy

Shrimi Choudhary New Delhi
The finance ministry on Wednesday reimposed expenditure curbs on ministries and government departments for July-September quarter. There will be no spending restrictions on the ministries of health, rural development, agriculture, MSME (micro, small and medium enterprises) and railways as part of a two-pronged strategy.

“The existing guidelines for expenditure control have been reviewed. Keeping in view the evolving situation arising out of Covid-19 and anticipated cash position of the government, it is felt essential to regulate Quarterly Expenditure Plan (QEP)/Monthly Expenditure Plan (MEP) of specific ministries/departments for July-September, 2021,” the Department of Economic Affairs in the finance ministry said in a