Finmin asks advisors to check expenses

The finance ministry has asked ministries and government departments to consult their financial advisors before seeking any approval for creation of new posts, issues involving abandonment or sacrifice of any revenue and notes seeking approval of the Cabinet or its sub-committees on matters having financial implications.

North Block has also asked ministries not to forward proposals like cadre review, upgrade of pay scales and enhancement of allowances because these issues are being handled by the newly-constituted Sixth Central Pay Commission.

"The Pay Commission, being an expert body appointed specifically for such matters, will be in a position to take a holistic view of issues pertaining to government pay structures, benefits etc," the finance ministry has said.

In a recent letter to secretaries of various central government ministries and departments, the department of expenditure in the finance ministry said: "To achieve the intended outcomes defined in measurable and monitorable terms and to ensure value for money, it is important that financial advisors are fully involved in the key processes that have clear economic and financial dimensions."

Financial advisors are considered to be representatives of the expenditure department.

The financial advisor has to formulate the budget of the concerned ministry and control expenditure; introduce an efficient system of management best suited to the ministry and carry out internal audit of payments and accounts of the ministry.

The finance ministry has also said the benefit of the financial advisor's advice can be best used only if it is obtained before seeking the approval of the competent authority. "Otherwise the purpose of obtaining advice gets defeated," the letter adds.