Madhya Pradesh: Finance Department Puts Stop On New Projects Without Cabinet Nod

Bhopal (Madhya Pradesh): The Finance Department has issued an order saying that the departments will not be allowed to implement any project without the cabinet approval.

According to the order, before implementing any project, the departments have to seek the cabinet nod. It has been done to control budgetary expenses. The cabinet approval will also be required even for implementing the Central Government’s projects.

The Finance Department also said before implementing any new scheme or project, the department concerned would be required to take approval of the Cost Screening Committee to be headed by the head of the department.

Afterwards, the proposal will be sent to three types of finance committees according to the cost of the project.

The proposal for projects up to Rs 50 crore will be sent to the Standing Finance Committee consisting of the secretary of the concerning department and other officers. The committee headed by the secretary (finance) will approve the projects worth Rs 50 crore to Rs 200 crore.

Similarly, the projects above Rs 200 crore will be sent to the Project Screening Committee to be headed by the Chief Secretary. The projects up to Rs 100 crore, for which only revenue expenses are be required, will be sent to the Finance Expenditure Committee to be presided over by the secretary (finance).

The projects worth over Rs 100 crore, for which revenue expenses are required, will be sent to the Revenue Project Screening Committee to be headed by the Chief Secretary.

If expenses of any project go beyond 10%, a nod has to be taken from the committees set up for approving funds in such cases.

Fresh approval to be needed for projects that will continue till March 31 next year The Finance Department’s circular says that fresh approval has to be taken for the projects that will continue till March 31 next year.

According to the Finance Department, the projects should be completed by September 2025. Else, the department will not spend a single penny on such projects after March 31. The 16th Finance Commission that is going to function from 2026 will continue till 2031. The approval will continue till that period.