Has the MP Cabinet Approved the New 'Finance Powers Manual' to Empower Departments?
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Synopsis
The Madhya Pradesh Cabinet has made a significant decision by approving the Finance Powers Manual 2025, aimed at enhancing administrative efficiency and enabling faster financial decisions. This updated framework promises to empower departments and streamline government operations, ushering in a new era of financial autonomy.
Key Takeaways
- Empowers departments to make financial decisions.
- Enhances ease of doing business in government.
- First revision in 13 years.
- New provisions for hiring and budget control.
- Effective from July 1, 2025.
Bhopal, May 27 (NationPress) Under the leadership of Chief Minister Mohan Yadav, the Madhya Pradesh Cabinet has officially approved the Finance Powers Manual 2025 (Part-1) on Tuesday, which grants increased financial authority to administrative departments.
After a span of 13 years, the state government has updated the Finance Powers Manual, enabling department heads to make swift decisions regarding projects and efficiently utilize allocated funds.
This new manual is designed to improve ease of doing business within government operations and to streamline various administrative procedures.
According to the State's Urban Development Minister, Kailash Vijayvargiya, these updated financial powers will take effect from July 1, 2025. He noted that a revision of the previous Finance Power Manual-2012 was crucial due to several important factors.
Vijayvargiya explained that the significant increase in costs over the past decade, along with the emergence of new types of expenditures for office operations, necessitated the introduction of this updated financial framework.
Furthermore, the Finance Department has been granted the authority to rectify clerical mistakes and implement necessary amendments in the future. They are also permitted to publish a Hindi version of the manual.
New provisions include empowering administrative departments to appoint budget controlling officers, allowing them to hire consultancy firms for project execution, and engaging interns. They can also approve honorariums under Fundamental Rule 46 and write off excess pension or grant payments.
With the implementation of this new financial power system, departments are now authorized to independently approve the demolition of departmental buildings and can sanction up to 80 percent of medical advances without needing approval from the Health and Medical Department.
Point of View
Ultimately benefiting the administration and the public. It reflects a growing trend of enhancing autonomy within government bodies to foster speed and efficiency.
NationPress
08/06/2025
Frequently Asked Questions
What is the Finance Powers Manual 2025?
The Finance Powers Manual 2025 is a revised framework approved by the Madhya Pradesh Cabinet that empowers administrative departments to make financial decisions independently.
When will the new financial powers take effect?
The new financial powers outlined in the Finance Powers Manual 2025 will come into effect on July 1, 2025.
Why was the Finance Powers Manual revised?
The manual was revised after 13 years due to significant cost increases and the emergence of new categories of expenditures for office operations.
What new provisions are included in the manual?
New provisions include the ability to appoint budget controlling officers, engage consultancy firms, and approve medical advances without prior approval.
How will this impact government operations?
This will enhance the ease of doing business within government operations and streamline administrative procedures.
