Par Panel on Committee on Estimates approves merger of DFGs

A Parliamentary panel has approved Finance Ministry's proposal for merger and reduction of number of Demand for Grants (DFGs) for better allocation of funds.
The Ministry of Finance, Department of Economic Affairs in a letter dated December 21, 2015, sought the approval of the Committee on Estimates (2015-16) of Parliament to reduce the number of DFGs which are extantly 109.
The reduction and rationalisation of the DFGs has been sought by clubbing together some of related Demands for Grants in the Budget 2016-17 to bring out a more holistic picture of budgetary allocation.
"Having regard to the multiple advantages like removal of departmental overlaps and duplication of works, greater operational flexibility in re-appropriation within a DFG, better allocation of resources and holistic budgetary picture, the Committee approve the proposed merger and rationalisation", the panel said in a report tabled in Parliament today.

The panel headed by senior BJP leader Murali Manohar Joshi however said the merger of the DFGs should not in any way whittle down Parliamentary scrutiny or erode financial control by Parliament.
The Finance Ministry had sought approval of the Committee to merge DFGs under other expenditure of Ministry of Home Affairs with DFGs for public works, stationary printing, Department of Urban Development etc.
The Ministry said merger of some of the DFGs would reduce the total number of DFGs, bring greater budgetary coherence, remove departmental overlaps and duplication in their functioning, avoid too thin spread of resources.