Govt Asks Ministries To Cut Expenses By 20%; Health Ministry Exempted, Courtesy Covid

In tune with the same, the Department of Economic Affairs in an office memorandum put in place a “modified exchequer control based expenditure management in respect of Q2 of 2021-22”.

Ministry Of Finance. (File Photo/ Getty)

New Delhi: Keeping in view the evolving situation arising out of Covid-19 and anticipated cash position of the government, the Finance Ministry has ordered various central ministries, departments and entities to cut down their spending by 20 percent.

In tune with the same, the Department of Economic Affairs in an office memorandum put in place a “modified exchequer control based expenditure management in respect of Q2 of 2021-22”.

“The existing guidelines for expenditure control have been reviewed. Keeping in view the evolving situation arising out of Covid-19 and the anticipated cash position of the government, it is felt essential to regulate quarterly expenses Plan (QEP)/Monthly expenditure plan (MEP) for Q2 (July-September 2021-22),” said the memorandum issued earlier on June 30.

This measure exempts 16 critical ministries, departments and expense heads, including health.

READ Full Memorandum Here

The rest ministries, departments and entities, including the Supreme Court, the two Houses of Parliament, the Vice President Secretariat and staff, household and allowances of the President, have been instructed to restrict the overall expenditure within 20 percent of the budgetary estimate 2021-22.

The 101 departments have, as per the order, been divided into two categories - A and B.

Category A has 16 ministries, including the Health Ministry, the Ayush Ministry, Department of Pharmaceuticals and Health Research, Defence Pensions and Ministry of Railways, which do not face a cut.

Advising the ministries/departments to observe strictly the guidelines and regulate the expenditure accordingly in the current fiscal, the memorandum said any deviation from these guidelines would require prior approval from the Finance Ministry.