Government eases rules to encourage ministries to spend, boost economy

The government has eased capital expenditure spending rules for various ministries under it. The easing of spending rules is aimed at boosting the economy and creating productive assets at a time when a deadlier wave of Covid-19 has hit India.

The government has eased capital expenditure rules to encourage various ministries to spend and boost the economy as the country tackles a deadlier wave of Covid-19. In a fresh memorandum, the finance ministry has said the cash management curbs put in place on monthly and quarterly spending by various ministries will not apply for capital expenditure. “The relaxations shall take immediate effect and shall apply until further orders,” said the finance ministry. The rules have been eased by the finance ministry to encourage various government departments to boost investments that will help create new assets.