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The Division of Expenditure (DoE), in a letter dated March 29, despatched to all ministries, departments and chief secretaries requested them to finish the method by March 31. ET has seen the copy of the letter.
Presently, ministries and departments which are already on TSA choose one autonomous physique by means of which they used to launch the just-in-time fund for higher transparency and expenditure monitoring.
“ABs (autonomous our bodies) receiving funds amounting to greater than 100 crore in a monetary yr shall be coated beneath Treasury Single Accounts (TSA) system w.e.f. 1 April, 2023,” the letter mentioned.
The brand new TSA system seeks to boost the effectivity in fund flows by means of a just-in-time launch. This reduces floating funds within the system, reducing borrowing and yielding curiosity financial savings.
The Centre was planning to implement it from October 1 final yr. However on November 4 it postponed it to April 1, as many autonomous our bodies weren’t ready.
The Centre expects to make important financial savings from the present scheme.“This on-boarding of autonomous our bodies will additional enhance the effectivity of funds utilized by the federal government, making them extra accountable and expenditure well timed,” a senior official informed ET.
By environment friendly use of know-how, the Centre is predicted to make substantial financial savings this yr to stability the additional expenditure on account of upper fertiliser subsidy.
It’s anticipating to avoid wasting Rs 10,000 crore on meals subsidy payments alone.
In addition to, it expects to avoid wasting Rs 13,000 crore due to TSA. One other Rs 8,000 crore saving is predicted from centrally-sponsored schemes, because the ministries and departments couldn’t totally utilise the allocations by the Centre.
Additionally it expects its dividend move above Rs 10,000 crore larger than budgeted. Dividend receipts from central public sector enterprises have already crossed Rs 52,000 crore in contrast with the Rs 43,000 crore revised estimate for FY23.
