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CMS in Central Government – Guidelines for expenditure control in Q3 (Oct to Dec 2020)

September 28, 2020 GEDWEBZIP

CMS in Central Government - Guidelines for expenditure control in Q3 (Oct to Dec 2020)

Cash Management System in Central Government (Oct 2020 to Dec 2020)

F.No. 12(13)-B(W&M)/2020
Ministry of Finance
Department of Economic Affairs
(Budget Division)
•••

New Delhi,
28th September, 2020.

OFFICE MEMORANDUM

Subject: Cash Management System in Central Government – Guidelines for expenditure control in Q3 (October, 2020 to December, 2020).

Attention of Ministries/Departments is drawn to this Ministry’s O.Ms. of even number dated 8.4.2020 and 23.6.2020 regarding modified exchequer control based expenditure management under Cash Management System in Central Government.

2. With a view to manage the cash flows of the Government, it has been decided to retain and continue with the same expenditure management measures, stipulated for Q1 and Q2, for Q3 (October, 2020 to December, 2020) of FY 2020-21.

3. However, during Quarter 3, Demand No.6 – Department of Fertilizers, Demand No.19 – Defence Services (Revenue) and Demand No.20 -Capital Outlay on Defence Services are re-classified as Category ‘A’.

4. Other conditions stipulated in this Ministry’s O.Ms. dated 8.4.2020 and 23.6.2020, the details of which are given below, will continue to be followed:

(a) Monthly Expenditure Plan (MEP) for October, November and December will mirror the MEP stipulation that were spelt out for April, May and June 2020;
(b) Expenditure on ‘salaries’ and ‘pensions’ will be as per actual requirement and shall be within the overall limits prescribed under cash management guidelines;
(c) The amounts that remain unspent in a month will not be available for automatic carry-forward into the next month. The amounts that remained unspent in a Quarter will not be available for automatic carry-forward into the next Quarter. Specific approvals of Secretary, Department of Expenditure shall be obtained by the Ministries/Departments for utilising these unspent amounts;
(d) Ministries/Departments while utilising their allocations shall take utmost care not to bunch up expenditures/releases in a bid to improve their pace of expenditure leading to parking of funds. In this time of acute cash stress, utmost care may be taken to avoid releases that can contribute to idle parking of funds; and
(e) Items of large expenditure would continue to be governed by the guidelines issued in this Ministry’s O.M. F.No.12(13)-B(R)/2016 dated 21.8.2017.

5. This has the approval of Secretary, Department of Expenditure.


( Vyasan R)
Deputy Secretary (Budget)

Signed Copy

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