Finance Ministry prohibits expenditure on all new schemes till March 2021

New Delhi: In the wake of the Covid-19 crisis, the Finance Ministry has issued a notification that no expenditure will be made for any new government schemes March 21.

The Ministry has however said that expenditure will only be allowed for the Prime Minister’s Garib Kalyan Package and the announcements made under the Rs 20 lakh crore Atma Nirbhar Bharat Abhiyan Package recently. No other scheme would be approved this financial year, said the ministry.

“No new proposal for a scheme/sub scheme, whether under deligated powers to Admnistrative Ministry, including SFC proposals or through EFC should be initiated this year (FY 20-21) except the proposals announced under the Prime Minister’s Garib Kalyan Package and Atma Nirbhar Bharat Abhiyan Package and any other special package/announcement,” an official statement said.

The Finance Ministry said that in the wake of COVID-19 pandemic, there is an unprecedented demand on public financial resources and a need to use the resources prudently in accordance with emerging and changing priorities.

The circular further said that the initiation of new schemes already approved in FY 20-21 including SFC Proposals (scheme upto Rs 500 crore) will remain suspended for one year till March 31, 2021.

The circular also noted that the continuing schemes need to be appraised and approved further for the period of 2021-22 to 2025-26 after 15th Finance Commission recommendations are accepted and resource position of public exchequer is clear.