Ministry of Finance Year Ender 2024: Department of Expenditure
Ministry of Finance Year Ender 2024: Department of Expenditure
The Department of Expenditure (DoE), Ministry of Finance, has consistently advanced fiscal governance and public welfare through innovative financial management and policy reforms. A pivotal achievement is the implementation of Direct Benefit Transfer (DBT) via the Public Financial Management System (PFMS). This initiative has supported the Digital India mission by enabling real-time, transparent fund transfers for over 1,206 schemes in FY 2024-25, processing transactions worth ₹2.23 lakh crore. Extensive integrations with 117 external systems and seamless interfaces with major banks have enhanced efficiency and accountability.
In alignment with the 15th Finance Commission’s recommendations, the DoE has strengthened state finances by facilitating additional borrowing capacities, performance-linked incentives, and grants for disaster recovery, healthcare, and regional development. For FY 2024-25, the net borrowing ceiling was set at ₹9.40 lakh crore, with an additional 0.5% of GSDP allocated for power sector reforms. These measures aim to boost operational efficiency and promote economic sustainability across States.
Public procurement reforms remain a key focus, with increased financial thresholds under the General Financial Rules (GFRs) and the release of a revised Procurement Manual in 2024. These updates prioritise Ease of Doing Business, transparency, and clarity in procurement processes, ensuring alignment with modern governance requirements. The delegation of Financial Powers Rules, 2024, further simplifies decision-making by empowering departments and individuals, fostering efficiency and responsibility in financial management.
The DoE has also introduced social security reforms for Government employees with the Unified Pension Scheme (UPS), which guarantees assured pensions and inflation-adjusted benefits for retired personnel. Scheduled for implementation from 1st April 2025, the scheme reflects the government’s commitment to securing the welfare of its workforce. Simultaneously, disaster management initiatives have included timely release of funds to states affected by floods and landslides, as well as modernisation of fire and emergency services.
These milestones underscore the DoE’s consistency and vision to maintain fiscal prudence, operational efficiency, and inclusive development. By integrating digital technologies, empowering financial autonomy, and addressing critical needs such as disaster recovery and social security, the DoE continues to strengthen governance and foster economic resilience through support for capital investment.
Following are some of the major achievements of the Department of Expenditure, Ministry of Finance, in 2024:
Public Financial Management System (PFMS) makes a direct and significant contribution to the Digital India Initiative of Government of India enabling Direct Benefit Transfer for Ministries/departments in Government of India.
DBT THROUGH PFMS AIMS TO ACHIEVE:
ACHIEVEMENTS OF DIRECT BENEFIT TRANSFER [DBT] (upto 31st November 2024)
Financial Year
Number of schemes
Total transactions (in cr)
Amount Paid
(in lakh cr)
2014-15
56
2.19
0.06
2015-16
90
6.75
0.22
2016-17
162
10.11
0.31
2017-18
296
16.55
0.90
2018-19
414
50.97
1.39
2019-20
507
102.37
2.46
2020-21
603
126.88
2.89
2021-22
891
190.36
3.14
2022-23
1081
266.14
3.29
2023-24
1146
258.31
3.34
2024-25 (till 30.11.2024)
1,056
181.64
2.23
Sl. No.
Name of Scheme
No. of Transactions
( in Cr.)
Amount paid (in Cr.)
Mahatma Gandhi National Rural Employment Guarantee [MGNREGA]
29.74
47,094.47
Pradhan Mantri Kisan Samman Nidhi Yojna [PMKISAN]
20.92
41,843.86
Pratyaksh Hanstantrit Labh [PAHAL]
91.78
13,433.42
National Social Assistance Program [NSAP]
10.03
11,617.19
Pradhan Mantri Awas Yojna Rural [PMAY-R]
0.45
16,621.53
PM-Surya-Ghar
0.040
3,103.43
Sl. No.
Name of Initiative
Status
DBT Open House
Implementation of SMS Facility for DBT Beneficiaries
Total SMS: – 4.97 crore
Total Scheme :- 378
DBT File Tracker & DBT Status Tracker
DBT File Tracker:- Total hit or No. of times Ministry/Department has accessed the DBT File Tracker to monitor the status of their DBT related files. – 1,810
DBT Status Tracker:- Total hit or No. of times Beneficiaries have used the tracker to check the status of their DBT applications. – 5.74 crore.
Onboarding of External System through integration for DBT Payment using PFMS
Total :- 117
Ongoing :- 12
Synchronization of Data between PFMS and DBT Mission
Total : – 790
Sharing of Deseeded Aadhaar Status with External Systems.
To reduce financial burden on companies to participate in the Government procurement, Department of Expenditure (DoE) has reduced the quantum of performance security from maximum 10% to 5% of the value of goods/ services by amending General Financial Rules (GFRs), 2017. (OM No. 1/2/2023-PPD dated 01.01.2024, copy enclosed).
The monetary thresholds under almost every procurement methods have been increased after nearly two decades through amendment in the relevant provisions of General Financial Rules (GFRs), 2017. (OM No. 1/3/2024-PPD dated 10.07.2024, copy enclosed).
Since the publication of the last Manual in 2022, there have been many developments in the form of policy initiatives with their clarifications, deliberations with stakeholders, Methodology for Assessment of Procurement Systems (MAPS) report 2020, Model Tender Documents for Goods, etc. necessitating the thorough revision of the Goods procurement manual. Department of Expenditure has revised the Manual for Procurement of Goods which was issued in the month of July 2024.
The revised Manual focuses on ease of business for suppliers and clarity for the procurement professionals. A wide range of topics have been rewritten such as clarifying extent of applicability to various entities, categorization of procurements, identification of conflict of interest, interest-free advance payments, new forms of performance securities, outsourcing procurement, auto-extension of bids, capping price variation and liquidated damages, mitigating carter formation, reverse auction, rate contracts, withdrawal by L1 bidders and many others including the latest amendment to General Financial Rules (GFRs).
(Rs. in crore)
S/
No.
Components
Grants release during
2024-25 (Upto 10/12/2024)
1.
Post Devolution Revenue Deficit Grant
18362.25
2.
Urban Local Bodies Grant
6845.04
3.
Rural Local Bodies Grant
20847.25
4.
Health Sector Grant
2894.01
5.
Central Share of State Disaster Response Fund
15823.20
6.
Central Share of State Disaster Mitigation Fund
1385.45
7.
Central assistance from National Disaster Response fund of which
(a)
Assistance for severe natural calamities in States
4050.93
(b)
For Expansion and Modernization of Fire Services in the States
757.39
(c)
Assistance for preparedness and Capacity Building Funding Window under NDRF
276.81
8.
Release of Central assistance from National Disaster Mitigation Fund for Urban Flood Mitigation Project to the Chennai City
647.55
Grand Total
71,888.88
Delegation of Financial Powers Rules, 2024 facilitates:
Based on the recommendation of the NPS Review Committee, the Unified Pension Scheme (UPS) was approved by the Cabinet on 24.08.2024.
The scheme is to be implemented w.e.f. 01.04.2025. The implementation modalities of the UPS, such as Regulatory, legal, accounting framework etc. are being worked in consultation with the concerned stakeholder departments.
- DIRECT BENEFIT TRANSFER [DBT] THROUGH PUBLIC FINANCIAL MANAGENMENT SYSTEM (PFMS)