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- The report approved a proposal by the Ministry of Finance to raise financial limits for NS and NIS (it was last revised in 2006).
- This limit is applied whenever expenditure provisions are augmented through appropriation of funds from the savings available within the same sections of Grants/Appropriation.
- Expenditure beyond financial limits can be done through supplementary proposals (from ministries/departments) for which parliamentary approval is necessary.
- Key highlights
| Specification | NS | NIS |
| Definition | Refers to expenditure arising out of a new policy decision, not brought to notice of Parliament earlier, including a new activity or a new investment
| Refers to a relatively large expenditure arising out of the expansion of an existing policy. |
| Object head | Machinery & equipment; ICT Equipment; Building & Structure; Infrastructure Assets; Arms & Ammunition; and Land. | Investment; loans and advances; subsidies; etc. |
| Reporting limit | Above Rs 50 crore to Rs 100 crore | 20% of the original appropriation or up to Rs 100 crore whichever is higher. |
- Rationale for revision
- Economic growth: Due to expansion in GDP growth (6-7% on YoY basis), budget size is also expected to grow.
- Delays in project execution: Low financial limits for NS/NIS expenditure prompted a rise in supplementary proposals.
- Enhanced monitoring: Defining NS/NIS uniformly at standardised Object Head would enable effective scrutiny by CAG.
