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With a view to boost economic activities slowed down due to the impact of COVID-19, the Finance Ministry has relaxed spending norms for the fourth quarter in a bid to spur capital expenditure. As per the existing guidelines, more than 33 per cent and 15 per cent of the budget estimates (BE) shall be permissible to be spent by ministries and departments in the last quarter and last month of the financial year, respectively.

The Department of Economic Affairs under the Finance Ministry said it has now been decided to relax the upper limit of 33 per cent of the BE as applicable for the last quarter of the current financial year as a one-time measure. This is subject to the condition that the ceiling of revised estimate (RE) for 2021-22 is not exceeded.

It added ‘for the items of capital expenditure, the ceiling of 15 per cent of the BE in the last month for this fiscal is also relaxed, provided the capital or overall expenditure is within the RE 2021-22 ceiling’. In view of relaxation, ministries and departments have been asked to carry out consequential modifications in their quarterly expenditure plan (QEP)/monthly expenditure plan (MEP). The relaxation is applicable with immediate effect for the current financial year or until further order.