Finance Ministry simplifies Budget rules
Chandigarh: The UT Finance Department is relieved with the decision of the Ministry of Finance, Government of India, to abolish the Plan and Non-Plan heads while drafting the Budget. This simplifies the Budget rules, said UT Finance Secretary Sarvjit Singh.
He said the directive was received recently from the Ministry of Finance, clarifying the changes. The UT Administration has now presented the Budget draft in relation to the new directive with bifurcation of expenditure under the Capital and Revenue heads instead of the Plan and Non-Plan heads.
He said, “This has made the Budget calculations and allocations in a simplified manner. Earlier the Capital and Revenue heads existed under the Plan and Non-Plan heads which were cumbersome. Secondly, the Ministry of Finance has also preponed the date of Union Budget which will enable us to allocate tenders for the developmental works al teast one month in advance, giving ample time to implement the tenders.”
While explaining the changes, the Finance Secretary said that earlier the Finance Department had been allocating the Budget under two heads of Plan and Non-Plan in which again two heads of Capital and Revenue were taken under the Five-Year Plan. The calculations were made cumbersome which generally delayed the decisions on expenses.
With simplification of the Budget allocation into two heads, it would be easy for the Finance Department officials to monitor the expenses of funds being made for the development works, he said. Under Capital the fixed assets and salaries would be allocated whereas under the Revenue head running expenses, wages, hospital expenses and other such inventories would be governed.
The confusion in allocating the tenders for the development works would now be rectified with earlier announcement of the Union Budget, said Sarvjit Singh. This year the Union Finance Ministry has decided to announce the Union Budget on February 1.
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