The government has set up a committee on non-Plan expenditure, with expenditure secretary as its chairman and Planning Commission secretary as a member. The committee would appraise proposals for all non-Plan schemes that involve expenditure of Rs 75 crore and above. With the constitution of the committee, no non-Plan expenditure would be referred to the finance commission or the public investment board.
Specific proposals will be considered by the committee in consultation with the secretary of the department concerned. After the proposals have been appraised, those involving expenditure of more than Rs 75 crore and up to Rs 150 crore will need to be approved by the minister in charge, while decision on those above Rs 150 crore and up to Rs 300 crore will be taken by the minister concerned in consultation with the finance minister. Proposals above Rs 300 crore and those involving the creation of autonomous organisations, irrespective of the outlay, would require the approval of the Cabinet or the Cabinet Committee on Economic Affairs.
The secretary of the department concerned has been allowed to approve non-Plan schemes of up to Rs 20 crore after they have been appraised within the department. The minister in charge will have the power to approve proposals beyond Rs 20 crore and up to Rs 50 crore after they have been appraised by the standing finance committee of the department concerned, under the chairmanship of the secretary with financial advisor and joint secretary or director of the department concerned as member.
