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GOVERNMENT OF ODISHA FINANCE DEPARTMENT

GOVERNMENT OF ODISHA FINANCE DEPARTMENT

 

No.                   0  7                /F                               Date: 01-01-2021

FIN-BUD1-MISC-0003-2020

 

From

Shri Ashok Meena, IAS

Principal Secretary to Government

 

To

The Additional Chief Secretaries/ Principal Secretaries/ Commissioner-cum-Secretaries/ Secretaries to Government

All Departments

Sub: Relaxation in expenditure rationalization measures adopted in the wake of economic downturn due to the pandemic Covid19.

 

Ref: Finance Department Letter No. 15275/F dated 15/05/2020, 20042/F dated 07/07/2020 and 31785/F dated 01/12/2020.

 

Sir/ Madam,

I am directed to invite reference to FD Letter No. 20042/F dt.07.07.2020 read with Letter No.31785/F dt.01.12.2020 and to say that Government had adopted some expenditure rationalization measures in the wake of economic downturn due to the pandemic Covid-19. As a result of some innovative resource mobilization measures, constant monitoring and partial recovery of the State economy, the resources of the State are now looking up. Now, in order to augment spending in priority sectors, it has become necessary to bring in some more relaxation in the expenditure rationalization.

 

  1. The Cash Management System involving 20 spending Departments was put on hold for the financial year 2020-21 till further orders vide FD Letter No.15275/F dated 15/05/2020 in view of the uncertainty associated with the revenue realization during the year. Public expenditure being the major source of generation of livelihood and augmenting the buying capacity of the individuals, there is a need to expedite the pace of programme expenditure by the 20 spending departments covered under Cash Management System.
  2. It has been stipulated in the Para -6 of FD Letter No15275/F dated 15/05/2020 that the 20 major spending departments covered under Cash Management System can sanction Programme Expenditure up to Rs.30 crore at a time. Keeping in view the ensuing working season in the state, Government has been pleased to enhance the sanctioning power of the 20 spending Departments erstwhile covered under Cash Management System (as per list at Annexure-I) from Rs.30.00 crore to Rs.100 crore at a time under programme expenditure for State Sector Schemes. Regarding expenditure from the allocation made in BE & Supplementary Budget, 2020-21 under Central Sector Schemes and Centrally Sponsored Schemes, all the Departments can sanction expenditure upto the extent central share available along with the admissible state share under such scheme. The other provisions prescribed in the FD Letter No15275/F dated 15/05/2020 will remain unaltered.
  3. Further to facilitate higher public spending in priority sectors, Government has pleased to relax some expenditure rationalization measures adopted vide Finance Department Letter No 20042/F dated 07/07/2020 read with 31785/F dated 01/12/2020 as detailed below:

 

Para NoExpenditure Rationalization Measures as per Letter No 20042/F dated 07/07/2020 and further relaxed vide F.D letter No 31785/F dated 01/12/2020Relaxation as per this Letter
4.gExpenditure out of the provision ‘Other Contingencies’ to be kept at the minimum level. Only expenditure relating to COVID management and other essential expenditure like purchase of office stationeries etc may be incurred. There shall be no expenditure on purchase of office furniture/ fixtures and furnishing. Expenditure out of the provision ‘Other Contingencies’ will be capped at 60% of the Budget Provision for the whole year. The same was further relaxed to 75%. Vide F.D letter No 31785/F dated 01/12/2020.Expenditure out of the provision                     ‘Other Contingencies’ will be within the Budget Provision for the whole year
6.c

Operation and Maintenance expenditure can be incurred only after approval of Annual Maintenance Plan (AMP) by Finance Department. Engineering Departments to prepare their AMP for the year 2020-

21 limiting it to a level of 60 % of the Budget provision, in consultation with Finance Department initially and on availability of resources balance work could start after November-2020. The same was further relaxed to 75% Vide F.D letter No 31785/F dated 01/12/2020.

Expenditure out of the provision ‘Operation and Maintenance’ will be within the Budget Provision for the whole year only after approval of Annual Maintenance Plan (AMP) by Finance Department.

 

4.

ANNEXURE-I

Sl.

No.

Demand No.Name of the Department
107Works
209Food Supplies and Consumer Welfare
310School & Mass Education
411ST & SC Development
512Health& Family Welfare
613Housing & Urban Development
717Panchayati Raj & Drinking Water
819Industries
920Water Resources
1022Forest & Environment
1123Agriculture & Farmers' Empowerment
1228Rural Development
1330Energy
1431Handlooms, Textiles & Handicrafts
1533Fisheries  &  Animal Resources Development
1636Women & Child Development and Mission Shakti
1738Higher Education
1839Skill Development & Technical Education
1940Micro, Small and Medium Enterprises

 

20

 

41

Department of Social Security & Empowerment of

Persons with Disabilities

 

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