The finance ministry has said that no new schemes will be initiated in this financial year (FY21), except the proposals announced under the Pradhan Mantri Gareeb Kalyan Package, Atma Nirbhar Bharat Abhiyan package and any other special package announcement this financial year.
The finance ministry has asked all ministries and departments not to initiate any new scheme.
In addition, schemes that are already approved for the current financial year will remain suspended till March 31 next year or further orders. This would also include those schemes for which in-principle approval has been given by the department.
In an office memorandum, the ministry said that it has been receiving many new proposals from various ministries and departments. In the wake of COVID-19 pandemic, it said that there is an unprecedented demand on public financial resources, and a need to use resources prudently in accordance with emerging and changing priorities.
For ongoing schemes, the department of expenditure said it has given an interim extension till March 31, 2021, or till the date the recommendations of the 15th Finance Commission come into effect, whichever is earlier.
"No funds may be released for schemes that are not in strict conformity to the instructions nor should budgetary provisions be made available by re-appropriation to such schemes," it said.
The memorandum also says that the continuation of all schemes would be based on an outcome review based on evaluation. “The continuing schemes need to be appraised and approved further for the period of 2021-22 to 2025-26 after 15 Finance Commission recommendations are accepted and resource position of public exchequer is clear This would also be dependent upon the evaluation and the outcome review,” it added.
The memorandum also added that any exceptions to these guidelines would require approval of the expenditure department.