Friday, March 12, 2010

Restrictions on treasury withdrawals

Thiruvananthapuram: The Finance Department has imposed curbs on the withdrawal of funds from treasuries during the end of the financial year coming to a close on March 31.

The curbs have been imposed to prevent last-minute rush by government departments to utilise their Plan funds and meet expenditure under various heads.

The State usually witnesses frenetic treasury withdrawals on the final day of the financial year as departments, in their attempts to prevent Plan funds and budget provisions from lapsing, resort to the practice of withdrawing huge amounts in cash and in demand drafts. Most often, funds are withdrawn in the name of incomplete works or purchases in violation of the Finance Code. Some departments present delayed bills, cheques and challans.

Additional Chief Secretary (Finance) P. Prabhakaran has directed all department heads and local bodies to ensure full utilisation of budget provisions for their Plan schemes by presenting their final bills on or before March 31. Since the banks and the treasuries have become fully computerised, banking transactions will end by March 31 midnight.

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