India- No new govt schemes for a year: Finance Ministry


(MENAFN- KNN India) No new govt schemes for a year: Finance Ministry

New Delhi, Jun 5 (KNN) Shrinking revenue and increasing coronavirus cases have forced the Finance Ministry to not to initiate any new scheme in the current financial year.

As per the latest order by the Department of Expenditure (DoE), all Central ministries & departments are prohibited from launching new schemes except those under Atma Nirbhar Bharat and Pradhan Mantri Graib Kalyan Yojana (Pradhan Mantri Graib Kalyan Yojana).

The schemes under 'in-principle' approval category have also been put on hold.

'It may be appreciated that in the wake of the COVID-19 pandemic, there is an unprecedented demand on public financial resources and a need to use resources prudently in accordance with emerging and changing priorities," the expenditure department said.

Despite the new economic packages announced by the Centre over the last couple of months, the expenditure department has been flooded with requests from ministries seeking ‘in-principle' approvals for new proposals and schemes.

As per the finance ministry's decision, even approved schemes up to Rs 500 crore will remain suspended in FY21 or till further orders, whichever is earlier.

'An interim extension for all ongoing schemes has already been given till March 31, 2021, or till the date of recommendations of 15th Finance Commission come into effect,' the order further said.

Finance ministry has decided not to release any funds for schemes this year that are not in conformity to its above guidelines.

The ministry also said that no budgetary provisions will be made available by re-appropriation to such schemes.

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KNN India

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