Enhanced Financial Powers of different Ministries

Q.  Which of the following is/are true?

1) Only Finance Minister can clear projects above Rs. 150 crores and up to Rs. 500 crores.
2) Projects above Rs. 500 crores need Cabinet approval.
- Published on 30 Jun 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Neither 1 nor 2
 
  • In order to expedite project approvals, the government has revised financial limits of departments and ministries while empowering ministers to clear projects of up to Rs 500 crore as against the earlier ceiling of Rs 150 crore.
  • Besides, projects or schemes worth Rs 500 crore and above and up to Rs 1,000 crore can be cleared by the Finance Minister and projects over Rs 1,000 crore would require the Cabinet approval.
  • Non-plan Schemes or projects of less than Rs 300 crore can now be appraised by Ministry or Standing Finance Committee of the Ministry concerned.
  • The financial powers of the Minister-in-charge of the administrative ministry in case of the Non-Plan schemes or projects have also been enhanced and the schemes or project costing less than Rs 500 crore can now be approved that level.
  • Earlier, the Minister-in-charge could approve projects costing less than Rs 150 crore.

Related Content

➨ Post your comment / Share knowledge


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)
▲