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Finmin Order : Clarification on Cash Management Guidelines – Regarding

February 24, 2021 selva

Finmin Order : Clarification on Cash Management Guidelines – regarding

F.No.12(13)-B(W&M)/2020

Ministry of Finance
Department of Economic Affairs
(Budget Division)

New Delhi,
17th February, 2021.

OFFICE MEMORANDUM

Subject: Clarification on Cash Management Guidelines – regarding.

Clarifications have been sought regarding expenditure ceiling during last quarter and last month of 2020-21. It is clarified that the reference to this Ministry’s O.M. No.F.15(39)-B(R)/2016 dated 21.8 .2017 in this Ministry’s O.M. No.2(17)-B(P&A)/2020 dated 4.1.2021 that communicated expenditure ceilings, is limited to regulating the large releases. Ministries/Departments during the last quarter/month of the current financial year under Cash Management Guidelines have to abide by the instructions contained in the said O.M. dated 21.8.2017 while making large releases.

2. It is, further, clarified that in respect of overall expenditure ceilings, the Cash Management Guidelines for the remaining part of FY 2020- 2021 issued by this Ministry vide O.M. No.2(17)-B(P&A)/2020 dated 29.10.2020 (copy enclosed) will be applicable. In other words, it is to state that QEP for the remaining part of the current fiscal may be considered as relaxed to the extent of expenditure ceiling finalized for RE 2020-2021.

( Rajat Kumar Mishra )
Additional Secretary (Budget)

F.No.2(17)-B(P&A)/2020

Ministry of Finance
Department of Economic Affairs
( Budget Division )

New Delhi,
29th October, 2020.

OFFICE MEMORANDUM

Subject: Cash Management Guidelines for the remaining period of the FY 2020-21.

Attention of the Ministries/Departments is drawn to the Pre-Budget Meetings for RE 2020-21 & BE 2021-22 being held between 16th October 2020 and 12th November 2020. Attention is also drawn to this Ministry’s O.M. F.No(s) 12(13)-B(W&M)/2020 dated 8.4.2020, 23.6.2020 and 28.09.2020 regarding modified exchequer control based expenditure management under Cash Management System in Central Government.

2. Ministries/Departments are requested to strictly adhere to the expenditure ceiling decided in the meeting. FAs may ensure that the expenditure is maintained within the ceiling decided during the meetings for RE 2020-21.

3. In modification of the OM No 12(13)-B(W&M)/2020 dated 28th September 2020, the quarterly expenditure plan (QEP) for the third quarter of current financial year may be considered as relaxed to the extent of expenditure ceiling finalized for RE 2020-21. FAs of the Ministries/Departments are hereby directed to strictly monitor the expenditure during the remaining months of this current fiscal to avoid any last minute rush of expenditure in the final quarter.

4. Ministries/Departments while utilising their allocations as per revised ceilings indicated in the Pre-Budget Meetings shall take utmost care not to bunch up expenditures/releases in a bid to exhaust their RE allocations leading to idle parking of funds. Releases that can contribute to idle parking of funds should be avoided.

5. items of large expenditure would continue to be governed by the guidelines issued in this Ministry’s OM F.No.12(13)-B(R)/2016 dated 21.8.2017.

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

 

( Vyasan R)
Deputy Secretory (Budget)

Signed Copy

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