Financial reforms initiated for fast-track growth: CM Himanta Biswa Sarma

GUWAHATI: Chief Minister Himanta Biswa Sarma said that big reforms have been brought in simplifying the Fixation of Ceiling (FoC) process, drawing pattern, digitization of FoCs through finassam.in a portal for speedy utilization of funds by DDOs.

The Chief Minister today attended the workshop on 'New Financial Architecture- Amendment of DFP Rules' with Finance Department officials, senior officers, finance and accounts officers and others at Assam Administrative Staff College.

"We are working towards a system where files won't have to come to the secretariat and financial regulations are relaxed to the maximum to augment funds utilization,'' the Chief Minister said.

Under the new architecture, three new committees have been formed - Departmental Finance Committee, Standing Finance Committee and Special Standing Finance Committee.

The Departmental Finance Committee will be chaired by the senior-most secretary of the department while the departmental minister will be the approval authority here up to Rs 2 crore. The Chief Secretary will be the Chairperson of the Standing Finance Committee. Chief Minister through the Departmental Minister will approve proposals between Rs 2 crore and Rs 10 crore. In the case of the Special Standing Finance Committee, Finance Minister will be the Chairperson. Chief Minister through Departmental Minister will approve proposals from Rs 10 crore up to Rs 100 crore. State Cabinet will approve proposals of more than Rs 100 crore.

Proposal for FoC based on the FS will be submitted directly by the HoD to Finance department through the online portal, without routing it through the administrative department. However, the administrative department will be provided access to the online portal to view and monitor the FS accorded or FOC proposals submitted.

In the case of Administrative Approval (AA), departments will accord approvals for amounts limited to double the budgetary allocation under the concerned Head of Account. For projects/schemes under CSS, RIDF, Central Sector Schemes, NEC/Non-Lapsable Central Pool of Resources and EAPs, AA will be accorded equivalent to the amount sanctioned for a project/ scheme by the Government of India / funding agency. For additional budget allocation in the same financial year, the scope of granting AA will increase by two times the additional fund allocation.

The Chief Minister said that these big reforms in the financial mechanism of the government would have far-reaching consequences and would take the State government financial utilization system closer towards the Central government mechanism. The new system will be initiated gradually so that the financial system does not get hampered, he said, a press release said.

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