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Public Accounts Committee (PAC) financial limits for ‘New Service (NS)’ and ‘New Instruments of Service (NIS)’ report | Current Affairs | Vision IAS
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Public Accounts Committee (PAC) financial limits for ‘New Service (NS)’ and ‘New Instruments of Service (NIS)’ report

Posted 19 Feb 2024

Updated 22 Mar 2024

2 min read

  • 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
SpecificationNSNIS
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 headMachinery & 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 crore20% 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. 
  • Tags :
  • New services(NS)
  • New Instruments of Service (NIS)
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