Home Finance State Relaxes Fiscal Deadlines

State Relaxes Fiscal Deadlines

Bhubaneswar: Principal Secretary Finance Vishal Kumar Dev has revised the deadlines for financial sanction, issue of allotment, re-appropriation of funds, surrender of provisions and drawal of funds in the remaining part of the current financial year.

Following the requests of several Departments, Mr.Dev recently issued a circular to all Additional Chief Secretaries (ACS), Principal Secretaries, Secretaries, Special Secretaries and Heads of Department in this regard.

The Department of Finance had earlier issued instructions to avoid rush of expenditure towards the fag end of the current financial year and fixed deadlines for issue of allotment, surrender of budgeted provision and withdrawal of funds etc.

In the meantime, some deadlines have elapsed and references for sanction/release and re-appropriation of funds beyond the date fixed are being received by the Department of Finance from different quarters.

“Rush of expenditure in the last quarter of the financial year defeats the objective of efficient and economic use of resources. It may also lead to unproductive and wasteful expenditure. However, keeping in view the difficulties faced by different Departments, it has been decided to further extend the deadlines for completion of all formalities,” Mr.Dev said in the letter.  

As per revised dealing, now the departments can issue sanction orders for release of funds till and issue allotments till February 25. Deadline for online transmission of allotment data to the treasury portal (IFMS) has been extended from January 15 to February 25.

Similarly, the deadline for surrender of un-utilized funds has been revised to February 28 from January 31.

The Administrative Departments have been asked to strictly adhere to these deadlines.

On receipt of intimation from the Department of Finance regarding shortfall in expenditure in the first three quarters of the current financial year, the amount to be surrendered is to be worked out in detail by the Administrative Departments under the cash management system and surrendered by February 28, 2022, he said.

Dev said the Directorate of Treasuries & Inspection will allow expenditure for the last quarter and the month of March 2022 after taking into account the amount to be surrendered.  

To avoid last minute rush, the Department of Finance has fixed March 9 as the last date of submission of bills to the Treasuries for claims under other contingencies, machinery, equipment, vehicle, share capital, subsidy and loans. March 15  is the last day for other claims.

Budgeted funds will not be allowed to be transferred to civil deposit under any circumstances and transfer of money drawn from treasury to civil deposit is banned at all levels, the Principal Secretary said.

The concerned Controlling Officers/ DDOs will be held personally liable for unauthorized transfer of funds to civil deposit. The Treasury Officers/Sub-Treasury Officers will also be liable for disciplinary action for violation of Government Orders in this regard, he warned.

Exactly after midnight of March 31, 2022, which is technically the end of the current financial year 2021-22, the IFMS would automatically disable all the allotments for 2021-22 across the State for the financial year 2021-22 and it would not be possible at all to carry out any transaction relating to the budget of 2021-22 after that.

He asked the departments not to surrender the budgetary allocation pertaining to central sector schemes and centrally sponsored schemes in a routine manner where there is likelihood of receipt of Central assistance and scope for expenditure towards the end of the financial year.

In case of late receipt of Central Assistance beyond the deadline, the Departments may immediately move the Department of Finance for extension of the deadlines to facilitate expenditure.

In case funds are to be transferred to implementing agencies, it is to be ensured that funds are drawn and transferred only for actual expenditure and not for parking in a bank account, Mr.Dev further advised.