Seek Prior Approval Before Re-appropriating Funds Provided for Travel, Other Expenses: Finance Ministry

The government has asked the ministries and departments to seek prior approval of the finance ministry before re-appropriating expenses earmarked for domestic and foreign travel and other administrative expenses which may remain unutilised in view of the pandemic. The Department of Expenditure under the ministry has issued an office memorandum with regard to re-appropriation of funds which are likely to remain unutilised on account of restrictions imposed by the government in view of the COVID-19 pandemic.

Under the Delegation of Financial Power Rules, 1978, the ministries and departments have the powers of augmentation of funds through re-appropriation in cases where the augmentation is less than Rs 5 crore. In view of the exceptional situation following the outbreak of the coronavirus pandemic, the finance ministry has imposed restrictions on re-appropriation of funds as the provisions made under heads like ‘Foreign Travel Expenses’, ‘Domestic Travel Expenses’, ‘Advertisement and Publicity’ may not be utilised in full.

Similarly, the office memorandum said there is also a need to protect the capital expenditure. According to the office memorandum, ministries and departments will have to seek prior approval of the Department of Expenditure for re-appropriation of funds provided for foreign and domestic travel, office and administrative expenses.