The finance ministry has come out with strict monitoring system under Department of Expenditure to keep focus on expenditure by key ministries as the government is trying to boost public spending, as per the report appeared in ‘The Economic Times’.
It quoted a source as saying that the idea is to make sure what has been allocated is spent. “We are reviewing the expenditures of key spending ministries on a monthly basis”, he told the paper.
Currently, the focus is on ministries like road transport and highways, shipping, railways, rural development and agriculture.
Move is part of NDA Government's plan to increase growth as private investment is yet to pick up.
It is ready to providing more funds for capex if such a need rises when it presents the first supplementary in the winter session of Parliament, the official said.
Economists said public spending is one of the major factors propelling growth.
"We see three positive impulses to growth: the seventh pay commission hikes, a normal monsoon and the ongoing public capital expenditure. At the same time, our leading indicators suggest that there is still no sign of an export or private capex turnaround," Sonal Varma and Neha Saraf of Nomura told the paper in a note.
Monthly monitoring is likely to ensure that quality of spending is upheld along with pace throughout the year.
It also permits maneuverability in shifting expenditure from programmes that instantaneously need funds to those that can be provided in next half of the year.