After PAC nod, govt proposes to hike ministries’ reporting limits for financial expenditure
After PAC nod, govt proposes to hike ministries’ reporting limits for financial expenditure
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La Excellence IAS Academy | February 19, 2024 | Economy
Syllabus: GS-III
Subject: Economy
Topic: Fiscal policy and Budgeting
Issue: New Instrument of Service
Context: government received approval from Parliament’s Public Accounts Committee (PAC) to revise the financial limits for ‘New Service’ and ‘New Instruments of Service.
- ‘New Service’ is the expenditure arising from new policy decisions not previously brought to Parliament’s notice.
- ‘New Instrument of Service’ means a significant expansion of existing policies.
Synopsis:
- With a growing GDP and budget size, upward revisions in financial limits are deemed necessary for efficient governance.
- There is a need for simplification in the process to facilitate easy adoption by ministries.
- This would improve decision-making speed and scheme implementation pace.
| Prelims connect:
Public accounts committee (PAC): · It was introduced in 1921 after its first mention in the Government of India Act, 1919 also called Montagu–Chelmsford Reforms. · It is now constituted every year according to the Rules of Procedure and Conduct of Business in Lok Sabha. · It presently comprises 22 members (15 members elected by the Lok Sabha and 7 members elected by the Rajya Sabha) with a term of one year only. |
Source: Indian Express
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