New Delhi: Prime Minister Narendra Modi has recently assented to allowing his ministerial colleagues substantial “financial autonomy”. A decision on any matter or proposal entailing expenditure of up to Rs 1,000 crore can now be taken by a ministry without approaching the Prime Minister’s Office or the Union Cabinet, a move that is in contrast to the popular perception that the Prime Minister has concentrated all powers in government in himself.
“Any decision worth Rs 200 crore, Union ministers can now take decisions on their own. In the case of a proposal worth between Rs 200 crore and Rs 1,000 crore, the ministry concerned would require consultation only with the finance ministry,” sources said. This is seen as a big leap in giving financial autonomy to ministers in the Modi government. During 10 years of UPA rule, the benchmark for ministers to take a decision on their own was limited to only Rs 200 crore.
“The move to enhance the financial independence of the ministers aims at two things: one, the Prime Minister wants to fast-track decisions in government and, two, to make ministers accountable for the subjects that they are handling,” sources said. The decision process on proposals worth up to Rs 1,000 crore would “genuinely” be fast-tracked.
