The government is tightening its belts. The finance ministry has put on hold all the new schemes for the current financial year to curb expenditure. Even those schemes which have already been approved for the current fiscal have been put on hold, barring those approved under the relief package announced recently.
The order issued by the department of expenditure, under the finance ministry, on June 4, said there was an “unprecedented demand on the public financial resources” because of COVID-19. So, there is a need to use resources “prudently in accordance with emerging and changing priorities”.
The department of expenditure said it was receiving huge amount of proposals from different ministries and for in-principal approval. The order immediately put a lid on all new proposals, except those related to the Pradhan Manti Garib Kalyan Yojna, and Atma Nirbhar Package – the two economic packages announced during the COVID crisis.
This government order follows its earlier order to the ministries to cut down on their budget expenditures for the year. The new order will stop all new schemes to be initiated by the individual ministry, thus halting new expansion works. Even the schemes upto Rs 500 crore, which have already been approved have been suspended till March 31, 2021. The finance ministry said no new funds will be released for these schemes.