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Finance Concurrence Must For Outsourcing

Bhubaneswar: State Government has issued a clarification regarding the engagement of manpower on an outsourcing basis, reiterating the mandatory requirement for prior concurrence from the Finance Department.

The clarification, dated July 24, 2025, issued by the Principal Secretary of the Department of Finance has addressed to various key officials including the DC, ACS, Principal Secretaries, Secretarties aims to streamline procedures and ensure financial oversight.

The letter, bearing File No. 21719/F. FIN-CGG-RULE-0001-2018, states that while initial engagement of manpower on an outsourcing basis requires prior Finance Department concurrence, subsequent renewals are exempt if the post-renewal number of manpower does not exceed the previously approved figure. However, if the proposed renewal involves a higher number of personnel, fresh concurrence from the Finance Department is mandatory.

The communication also highlights that the power delegated to administrative departments under Rule-12 of the Delegation of Financial Power Rules, 1978 (amended vide FD OM No.7460/F dated 04.03.2025), is intended for contract execution and sanction expenditure. It explicitly warns against misinterpreting this delegation as a waiver of the mandatory requirement for obtaining prior concurrence from the Finance Department for manpower engagement, as outlined in the first part of the clarification.

The order underscores the State Government’s commitment to maintaining financial discipline and proper authorization in manpower outsourcing endeavors across various departments.