Central ministries and departments have been asked to "strictly" comply with recent austerity steps while seeking additional funds through the next batch of Supplementary Demands for Grants to be presented in the Winter Session of Parliament.
"Steps/measures to be taken for better fiscal and expenditure management for 2013-14...may kindly be followed strictly," the Finance Ministry said in a communication to all the financial advisors.
On September 18, the government had announced a slew of austerity measures, including cut in plan expenditure and ban on creation of new posts, with an aim to keep the fiscal deficit with in the target level of 4.8 per cent of the GDP.
The second batch of Supplementary Demands for Grants for 2013-14 is to be presented to Parliament in the ensuing Winter Session likely to commence in November or December.
The budget controlling authority or financial advisors have also been asked to ensure that the proposals are made on the basis of "thorough objective and realistic assessment" of additional requirement of funds in each case that is proposed for inclusion in the next batch of demands for grants.
This, the Ministry said, has to be ensured as the Public Accounts Committee has commended adversely on cases where ministries or departments obtain supplementary grants in earlier years but the final expenditure was less than or in excess of the approved grant.
The First batch of Supplementary Demands for 2013-2014 passed by Parliament was for an additional expenditure of about Rs 7,500 crore.
Of this, the net cash outgo was only Rs 127.14 crore and gross additional expenditure, matched by savings of the ministries/departments or by enhanced receipts/recoveries aggregated to Rs 7372.25 crore.