In a bid to boost investment spending, the Ministry of Finance eased spending standards for the fourth quarter to boost slow economic activities due to the impact of COVID-19.
According to existing guidelines, more than 33% and 15% of Estimates (BE) can be spent by ministries and departments in the last quarter and last month of the fiscal year, respectively.
It has now been decided to relax the upper limit of 33 percent of BE applicable for the last quarter of the current fiscal year as a one-time measure, the Department of Economic Affairs of the Ministry of Finance said in a memorandum from the office.
This is subject to the condition that the Revised Estimate (RE) cap for 2021-22 is not exceeded, the January 19, 2021 memorandum states.
“For capital expenditure items, the cap of 15% of the BE in the last month for this financial year is also relaxed, provided that the capital or overall expenditure is within the cap RE 2021-22”, a- he declared.
In view of the easing, ministries and departments have been requested to make consequential changes to their Quarterly Expenditure Plan (QEP)/Monthly Expenditure Plan (MEP).
The relaxation is applicable with immediate effect for the current financial year or until further notice.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)