As part of expenditure reforms, the Finance Ministry has issued new norms for efficient appraisal and approval of public funded schemes as well as to improve the delivery of goods and services to citizens. Besides, it empowers ministers to approve expenditure proposals of up to Rs 500 crore as against the earlier limit of Rs 150 crore.
“In order to build a growth friendly eco-system, financial processes and systems are as important as the fund allocations,” the Finance Ministry said in a statement on Wednesday. It added: “The Department of Expenditure, Ministry of Finance, has issued comprehensive guidelines on August 5, for appraisal and approval of public funded schemes and projects.”
With the announcement in the Union Budget 2016-17 of doing away with Plan, Non-Plan distinction at the end of the 12th Five Year Plan, it has become necessary to put into place a Plan, Non-Plan neutral appraisal and approval system, it said.
“The Department of Expenditure has accordingly undertaken a comprehensive review of the instructions issued over the last three decades, and replaced them with a simpler framework which will greatly improve the efficiency with which schemes and projects are appraised and approved in our system,” the statement said.