Union Government enhances Financial Powers of Ministries, Departments

July 1, 2016

The Union Government has decided to enhance financial powers of its Ministries, Departments for appraisal and approval of Non-Plan Schemes or Projects.
In this regard, Union Finance Ministry has issued a notification in order to expedite appraisal and approval process in the Union Government Ministries and Departments.
As per the revised delegation by Union Finance Ministry

The Committee on Non-Plan Expenditure (CNE) will now appraise proposals involving expenditure of 300 crore rupees and above. The earlier this limit was of 75 crore rupees.
The concerned Ministry or Standing Finance Committee of the Ministry will now appraise Non-plan Schemes and projects involving expenditure less than 300 crore rupees.
The Minister-in-charge of the administrative Ministry now can approve Non-Plan schemes costing less than 500 crore rupees. Earlier this limit was of 150 crore rupees.
Scheme or projects having financial implications of 500 crore rupees and above and upto 1000 crore rupees will be approved by Union Finance Minister.
The Union Cabinet or Cabinet Committee on Economic Affairs will final the competent financial authority for proposal having financial limits of 1000 crore rupees and above.
The Financial Adviser now can appraise upto 20% increase in the firmed up cost estimates.
If the absolute cost escalation is upto 75 crore rupees it has to be approved by Secretary of the concerned administrative Department.
In case the absolute cost escalation is above 75 crore rupees, then the Administrative Minister-in-charge will approve it.

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