The government has empowered project directors to spend first and second instalments of the government portion of the allocated funds for approved schemes.
They can utilise the funds against the approved development projects under the ministries and agencies.
The finance ministry has made a change in its guideline for release and utilisation of funds for projects, according to a circular.
First and second instalments of government portion of the funds, excluding value added tax, supplementary duty and land acquisition, under approved projects will now be considered released automatically.
Earlier, project directors required to have an order from their respective ministries and departments to release funds, the circular said.
However, ministries and departments concerned will release third instalment of allocated funds against development projects.
On the other hand, the ministry's consent will be required for the release of fourth instalment of such funds, it said.
According to the circular, the government has amended the guideline to ensure transparency and accountability in the utilisation of funds for development projects.
It also aims to ensure 'value for money' through discouraging the tendency of 'hurriedly' spending funds for projects at the last stage of a fiscal year.
