The government is set to revise the financial limits for ‘New Service’ (NS) and ‘New Instruments of Service’ (NIS) following approval from the Parliament’s Public Accounts Committee (PAC).
About the latest revision:
- The revisions aim to reduce the frequency of Demands for Supplementary Grants presented to Parliament during a financial year by applying financial limits to NS or NIS expenditures related to the expansion of an existing policy.
- The significance of this revision lies in its response to the expansion in GDP growth (6-7% YoY), expansion in the budget, addressing the issue of low financial limits for NS/NIS expenditures that lead to a rise in Supplementary Grants.
- Supplementary Grants leads to delays in the approval process.
About the ‘New Service (NS)’:
- NS is described as expenditure related to a new policy decision or activity not previously presented to Parliament.
- Its new reporting limit set between Rs 50 crore to Rs 100 crore.
About the ‘New Instruments of Service’ (NIS):
- NIS is identified as significant expenditure due to the important expansion of an existing policy.
- Its new reporting limit being 20% of the original appropriation or up to Rs 100 crore, whichever is higher.
Ref: Source
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