For the first time within a single financial year, the Odisha government has imposed spending limits on departments not included in the Cash Management System (CMS) following the approval of a second vote-on-account.
According to the Finance Department’s new regulations, non-CMS administrative departments are now authorised to sanction up to Rs 15 crore at a time for administrative expenses and transfers from the state. For program-related expenditures, including state sector schemes, central sector schemes, and centrally-sponsored schemes, these departments can approve up to Rs 30 crore.
In contrast, the 20 key spending departments under the CMS are required to maintain a minimum expenditure level of 60% in both administrative and program expenditures by the end of the third quarter. This threshold is non-negotiable, ensuring these departments meet critical spending targets.
A Finance Department official noted that despite the imposed limits on sanctioning and releasing funds from the vote-on-account, exceptions are made for certain expenditures. These include relief expenses, grants-in-aid (salaries) for aided educational institutions, scholarships and stipends for SC and ST students, modernization of the state police force, judiciary, election, and other security-related costs. Additionally, departments retain the authority to sanction funds for resource-tied schemes and the state’s flagship programs, such as Basudha, Madhubabu Pension Yojana, Gopabandhu Jana Arogya Yojana, Mukhyamantri Swasthya Seva Mission, and Setu Bandhan Yojana.
The regulation also stipulates that creating new posts will require prior approval from the Finance Department. Departments must justify the need for new positions based on public service delivery or developmental needs. Proposals for new posts must include an assessment of redundant positions, and new positions will only be considered if at least 85% of the existing sanctioned posts in the relevant category have been filled.
This move aims to enforce fiscal discipline while ensuring that essential public services and development projects continue without disruption.
