MP Cabinet approves 'Finance Powers Manual' to empower departments to take decision
Bhopal: Chief Minister Mohan Yadav-led Madhya Pradesh Cabinet, on Tuesday, approved the Finance Powers Manual 2025 (Part-1), empowering administrative departments on financial issues.
The state government has revised Finance Powers Manual after 13 years, which will empower the heads of the departments to take quick decision on projects and use the money allocated to them.
The approval of the Finance Powers Manual 2025 (Part-1) is aimed at enhancing ease of doing business in government operations and streamlining administrative procedures.
The newly approved financial powers will come into effect from July 1, 2025, State's Urban Development Minister Kailash Vijayvargiya said, adding that revision of existing Finance Power Manual-2012 has become necessary due to several key factors.
The Minister told that a significant rise in the cost of various items over the past 13 years and emergence of new categories of expenditures related to office operations were among the key reasons which made the government to come with the new financial power.
"The Finance Department has been authorised to correct clerical errors and make future amendments as necessary. Permission was also granted to publish the Hindi version of the manual," Minister Vijayvargiya said.
He added that new provisions include empowering administrative departments to designate budget controlling officers, authorising departments to engage consultancy firms and agencies for project work.
It will also empower departments to engage interns, approve honorariums under Fundamental Rule 46, permitting departments to write off excess pension or grant payments.
With new financial power system, departments can now independently approve demolition of departmental buildings, and departments may now sanction 80 per cent of medical advance without seeking approval or consultation from the Health and Medical Department.
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