GST regime brings new cash mgmt system for Government expenses
The new GST regime has brought with it a new cash management system for Government expenditure and income with the Home Ministry directing all its 21 divisions to strictly follow it to avert any situation of temporary mismatch in cash outflows and inflows. In a circular, the home ministry said the revised cash management system, formulated by the Ministry of Finance, has to be followed in view of the changes in tax receipt under the GST regime.
As per the guidelines of the new system, the salary of the employees should be released on the last working day of each month and the bulk expenditure items of more than Rs 2,000 crore should be timed in the last month of each quarter to utilise direct tax receipt inflows in June, September, December and March. A calendar of big releases of Rs 200 crore to Rs 2,000 crore shall be prepared and date of release should be kept between 21st and 25th of the month, according to the guidelines, accessed by PTI.
In case a major expenditure of more than Rs 200 crore and above needs to be prepared outside the prescribed dates, prior approval of the budget division of the finance ministry should be taken. Not more than 33 per cent of the expenditure of budget estimates in the last quarter and 15 per cent in the last month of the financial year shall be permissible. The restriction shall be observed both scheme-wise as well as for the demand for grants as a whole. The financial adviser of the ministry should review and freeze the timing of the receipt of dividend and various other non-tax receipts of the ministry.
The financial adviser of the ministry should monitor the timely realisation of the non-tax receipts and submit collection details of non-tax receipts through the online portal 'Bharat Kosh' of the Controller General of Accounts, according to the guidelines. The guidelines said that the home ministry will furnish the month-wise tax revenue inflows to budget division on quarterly basis.
The financial adviser will also monitor the release of funds to autonomous bodies and other organisations to ensure that there is no undue build up of funds with such bodies. Release of funds to autonomous bodies and implementing agencies will be on monthly basis, rather than in adhoc manner, to avoid parking of funds, the guidelines said. Each division of the ministry has to prepare monthly or quarterly expenditure plan and send it to the budget division of the finance ministry within two weeks of passing of the demand for grants in Parliament.
- Business Corner 12 Dec 2017 | PNS
- Tata Motors to hike prices by up to Rs 25K 12 Dec 2017 | PNS
- Y Screens explores new avenues to provide entertainment & jobs 12 Dec 2017 | PNS
- What people want from technology 12 Dec 2017 | Kushan Mitra
- Good times for mkt continue, Sensex rallies 205 points 12 Dec 2017 | PTI
- ‚ÄėGovt to fully protect public deposits‚Äô 12 Dec 2017 | PNS
- Prabhu calls for devp; rejects new issues for talks 12 Dec 2017 | PNS
- Food security & E-commerce biz: Tough stance keeps India on course 12 Dec 2017 | TS Vishwanath
- Low base propels passenger vehicle Nov sales to 14.29% 12 Dec 2017 | PNS
- India‚Äôs ultra-mega solar project to be discussed at France Summit: WB chief 11 Dec 2017 | PTI
Sunday EditionView All
10 Dec 2017 | AFP | Seoul
North Korea blamed US "nuclear blackmail" for soaring tensions over its weapons programme in rare meetings with a senior UN official, but agreed to regular communication with the organisation, state media said today. Jeffrey Feltman arrived in Beijing today after wrapping up a five-day visit to Pyongyang aimed at defusing the crisis, just a week after North Korea said it test-fired a new ballistic missile capable of reaching the United States...
STATE EDITIONSView All
12 Dec 2017 | PNS | Dehradun
The Chipko Movement leader and noted activist Chandi Prasad Bhatt said that the Himalayan region is experiencing the effects of lack of political will and absence of ground level implementation of various environmental laws. He said this while delivering the second RS Tolia memorial lecture on the occasion of International Mountain Day at the regional science centre of the Uttarakhand State Council for Science and Technology (UCOST) here on Monday...