The Centre has withdrawn spending curbs on ministries and government departments and allowed them to spend as per their budget estimates for remaining part of the current financial year.

       The decision was triggered by rise in government revenues which are running ahead of the budgeted target, despite the impact of the second Covid wave on economic activity during April-May of the current fiscal.

       The finance ministry had imposed 20 per cent spending curbs on ministries and departments for July-September quarter following the second wave of the pandemic and the subsequent hit to the economy.

       “The guidelines have been reviewed. The stipulation to regulate the overall expenditure within 20 per cent of BE 2021-22 in July-September quarter “stands withdrawn” with immediate effect. Accordingly, all ministeries and department are now permitted to spend as per their approved BE until further orders during remaining part of this fiscal” budget division of Department of Economic Affairs said on Friday.

       Overall expenditure of more than 80 deportments, including steel, labor and civil aviation, were being restricted to 20 per cent of the budget estimate for the current financial year.