Resource constraint may lead to no new scheme funding in FY21

TIL Desk/Business/New Delhi/ Government has suspended expenditure on all new and approved public funded schemes and projects of ministries during the current financial year in wake of Covid-19 pandemic that has put unprecedented dem and on public financial resources.

Accordingly, ministries have been told that no new schemes and sub-schemes should be initiated in FY21 excerpt those announced under Pradhan Mantri Gareeb Kalyan package, Atma Nirbhar Bharata Abhiyan package and any other special package and announcement made by the government during the course the year counter adverse impact from coronavirus outbreak.

According to an office memorandum of department of expenditure in the Finance Ministry, the changes has been made as there is a need to use resources prudently in accordance with emerging and changing priorities. Despite the new economic packages announced by the Centre over last couple o f months, expenditure department has been flooded with requests from ministries seeking ain-principle” approvals for new proposals and schemes.As per the finance ministry”s decision, even approved schemes upto Rs 500 crore will remain suspended in FY21 or till further orders, whichever is earlier.