With the decision to do away with the distinction of Plan and Non-Plan expenditure from the next fiscal, the Department of Expenditure in the Finance Ministry has introduced new guidelines for approval of spending for projects.

Now, implementing Ministries have been empowered to appraise schemes and projects costing between ₹100 crore and ₹500 crore through their Standing Finance Committee and Delegated Investment Boards, respectively. The earlier limit was ₹150 crore.

Projects and schemes costing between ₹500 crore and ₹1,000 crore will be cleared by the Minister in charge and the Finance Minister. Similarly, projects over ₹1,000 crore will be cleared by the Union Cabinet.

Meanwhile, schemes of up to ₹100 crore can be approved by the nodal Secretary. “A specific time frame for appraisal has been laid down for speedier decision-making,” said the Finance Ministry in a release on Wednesday, adding that the guidelines come into effect immediately.

The Ministry has further said that no new company, autonomous body, institution or university or other special purpose vehicle should be set up without the approval of the Cabinet, irrespective of the outlay.

Further, to ensure “efficient management” of public spending, the Ministry has said that no new scheme or sub-scheme will be initiated without prior in-principle approval of the Department of Expenditure.

The guidelines also asked Ministries to review and resubmit proposals for continuing their respective schemes at the end of the Twelfth Plan. The NITI Aayog will also initiate third party evaluation of both the Central sector as well as the Centrally-sponsored schemes.

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