Odisha Government’s desires that its departments exercise caution in allocating funds from the federal government. They are now required to hold off on making additional requests until they have received the monies. Unlike earlier, when they could request money simply by receiving approval, this is not the case. The Finance department found that departments were requesting money without verifying that they were receiving it, which is why this change was made. There are now new guidelines for the approval and disbursement of funds in 2024–2025.
Up to 50% of the funds that departments get from the central government may be used, but only in cases of extreme urgency. This extends to April through July. For the entire year, they are permitted to use up to 40% of the funds for routine expenses like departmental and program administration. Without authorization, they are unable to begin new projects or add staff. Funds will be allocated to critical state programs, project completion, and disaster relief. They must decide how they will use the funds they have for the year by April 30. By May 15, collectors must also submit a report detailing their income and expenses. This is to ensure that they are not simply hoarding money for personal use.
