Delegation of Financial Powers for release of funds for the Fourth Quarter from January 2026 to March – 2026 for the financial year 2025-26
Delegation of Financial Powers for release of funds for the Fourth Quarter from January 2026 to March – 2026 for the financial year 2025-26 PREAMBLE: In Government Orders issued from time to time, financial powers for release of funds have been delegated to Administrative Departments.
This order for delegation of financial powers for 2025-26 covers release of funds for both Revenue and Capital expenditure in financial year 2025-26. The delegation in this order should be exercised by Additional Chief Secretaries /Principal Secretaries/Secretaries to Government and should not be delegated further.
GOVERNMENT ORDER NO. FD 4 TFP 2025, BANGALORE,
DATE:01.01.2026
Part I – Administrative approval:
1. Funds can be released only for those schemes which have been approved as ongoing or new schemes during a financial year. The norms and procedures for approval of ongoing and new schemes along with detailed guidelines for monitoring, issued vide at reference (2) and (3) above, should be read with any further instructions / guidelines issued by Planning Department during FY 2025-26.
2. The order for administrative approval should not be construed as an order for release of funds. There should be specific orders for release of funds as per the delegated powers for various approved schemes. Administrative Departments should verify scheme guidelines, administrative approval and action plan process before release of funds to the schemes/programs.
3. Administrative approval for estimates of works up to Rs. 10 crore and procurement of goods and services up to Rs.10crore can be accorded presuming concurrence of Finance Department (subject to following the provisions of the KTPP Act and subject to availability of Funds).
Part II Release of funds requiring specific prior concurrence of Finance Department:
4. Concurrence of Finance Department should be compulsorily obtained for release of funds for the schemes/class of schemes listed in Annexure-1 of this Government Order. For the rest of the schemes, delegation as described below will be applicable.
5. The approval of the Finance Department is mandatory for all New schemes.
6. All provisions under VPP (vacant post provision) across all the demands are not delegated to the departments.
Share Capital & Loans:
7. Administrative Departments by following the instructions given in Transaction of Business Rules 1977 and G.O. No: FD I BLA 2013 dated 26.11.2013 issued by Finance Department in this regard, and after ensuring that cumulative release towards share capital should not exceed authorised share capital and state share towards share capital is as per the shareholder’s agreement, share capital up to Rs. 10 crores in a Financial Year, can be released up to the budget provision (RE) presuming concurrence of Finance Department. Share Capital more than Rs.10 crores in a year and all loans irrespective of amount, requires prior concurrence of Finance Department.
Part III – Release of funds by Administrative Departments presuming concurrence of Finance Department
8. For the items of expenditure listed in Annexure-2, funds up to the budget provision (RE) can be released presuming concurrence of Finance Department. For those HOAs/object heads which are not included in Annexure-2, releases shall be made by following instructions specified in Para 10 onwards, as the case may be, The allocation under OH 021-Reimbursement of Medical expenses may be released. depending upon the request from such offices (DDOs), instead of releasing equally to all Group DDOS.
9. Balance cost of works: The funds provided in 2025-26 under Capital heads for civil & construction works has to be released as stipulated in this order by following the instructions issued vide G.O No: FD 127 Exp-12/2023 dated: 16.5.2023.
Schemes (HoAs) with budget provision of less than Rs.10 crores:
10. For ongoing schemes/programs/non salary expenditure with budgetary provision up to Rs.10 crores, the amount up to the budget provision (RE) may be released presuming concurrence of the Finance Department.
11. For those schemes wherein F.D. has concurred to keep amount in P.D account or Bank account, amount can be released as above, only after ensuring 75% of the amount in P.D. /Bank account have been spent.
Part IV -Schemes with budget provision of Rs.10 crore and above:
Monthly releases during Fourth Quarter:
12.One twelth (1/12) of the budgetary provision BE/RE for the following schemes may be released monthly by the Administrative Departments during fourth quarter of the financial year 2025-26, presuming concurrence of the Finance Department subject to utilization of 75% of releases including opening balance
a. All schemes of Public Works Department except those mentioned in Annexure-1.
b. All schemes of Major, Medium and Minor Irrigation except those mentioned in Annexure-1.
e. The amount to be released for “Gruha Jyothi” scheme and “Shakti” scheme upto March-2026,
Provided that in respect of (a) (b) & (c) above, SCSP-TSP releases shall also be made monthly at the rate of 1/12th of the SCSP-TSP budget provision (RE).
Release under Guarantee Schemes:
13. All release for guarantee schemes namely Yuvanidhi, Anna Bhagya and Gruha Lakshmi Schemes should be done only with the concurrence of Finance Department.
Releases during the 4th quarter: (January-2026 to March-2026)
14. For all other schemes which are not included in Annexure-1 & Para-12 above, 1/4th of the budget provision (RE) can be released in Fourth instalment, presuming concurrence of Finance Department.
15.Bank/PD Accounts: If Finance Department agreed to keep the funds Bank/P.D accounts 4th quarter instalment shall be released provided at least 75% of the opening balance with the implementing agency in bank account or personal deposit account, have been utilized. Internal Financial Advisors of Administrative Departments are responsible for verifying and ensuring this aspect.
16. Administrative Departments are requested to examine the balances. remaining in the PD account/Bank account of the implementing agencies (Boards/Corporations/departmental officers etc.) by using NTT module of Treasury before releasing funds.
Debt Servicing:
17.Release of funds for debt servicing up to budget provision, (RE) as per terms and conditions of the debt may be made presuming concurrence of Finance Department. Payment shall be directly made to the concerned Financial Institutions. Under no circumstances this should be deposited in any bank account.
Release of Funds to PRIS:
State Schemes
18. In respect of State schemes, the current practice of release of funds to Panchayat Raj Institutions (PRIs) by Finance Department shall continue.
19. In the ZP link document, provisions under some schemes have been. made under lumpsum OH-300. Prior concurrence of Finance Department is necessary for those schemes listed at Annexure-1B. Other lump sum schemes under District Sector provided under OH 300. may be released by the concerned Administrative Departments. For District Sector schemes, concerned Administrative Departments should ensure that SCSP and TSP are also released in pro-rata manner for the concerned schemes with each corresponding release.
20. Administrative Departments have to take action for release of funds for District Sector centrally sponsored schemes listed in Annexure-3 by following the procedure prescribed at Para 25 onwards.
Release of Funds to ULBs:
21. Except the schemes listed in Annexure-1, 1/4th of budget provision (RE) may be released in 4h instalment presuming concurrence of Finance Department provided at least 75% of the funds released earlier. including any opening balance with the implementation agency or in the personal deposit account have been utilized.
22.For release of funds pertaining to SCSP & TSP, Urban Development Department shall ensure that the allocations as intimated in the link document are included in the release orders while releasing funds to ULBs.
Releases of Funds pertaining to SCSP & TSP:
23. Amount up to 1/4 of budget provision (RE) under SCSP & TSP components may be released in 4th instalment by the Administrative Departments as follows:
a. For schemes listed at para 12 (a) and (b) above, 1/12th of budget provision (RE) may be released monthly under SCSP-TSP schemes from January 2026 to March-2026.
b. For the other schemes excluding para 12 (a) and (b) 1/4th of the budget provision (RE) may be released during fourth quarter.
c. For all Beneficiary oriented schemes, the SCSP/TSP releases should be as per the allocation ratio in the Budget.
Reimbursable Schemes:
RIDF Schemes/NABARD Schemes/EAP
24. Except schemes listed at Annexure-1, up to 1/4th of budget provision (RE) may be released in 4 quarter presuming concurrence of Finance Department, provided at least 75% of the previous releases, including opening balance, have been utilized and time lag between expenditure and filing of reimbursement claims with Concerned funding agency/GOI is not more than one month is ensured. The Government Order should include details of compliance to the above conditions.
State Schemes assisted by Centre & other Centrally Sponsored Schemes:
25. For release of funds towards Central and State shares after sanction order has been issued by Government of India but before credit to the State Government account, proposal should be sent to Special Officer (FRC&CC) in Finance Department with the release order from Government of India and details of available Budget provision (RE).
26. In all Centrally sponsored and Central sector schemes after receiving Credit Confirmation Slip, the central share along with state share has to be transferred to SNA account within 30 days, as per the Scheme guidelines, by the administrative departments, if budget is available. In such cases proposal need not be sent to Finance Department.
27. If there is a shortage of funds, proposal may be sent to Finance Department immediately for additionality. Under no circumstances Administrative departments should release any central and state share amount without receiving Credit Confirmation Slip. If the amount is not transferred to the SNA account within 30 days, the Central Government will impose a penalty. For any such lapses the concerned administrative department will be held accountable and penalty amount will be deducted from the department’s budget allocation.
28. Ministry of Finance, GOI vide its letter No F. No 1(27)/PFMS/2020, dated: 10.06.2025 instructed to shift 37 CSS schemes from SNA to SNA-SPARSH with effect from 01.07.2025. Hence all departments have to take necessary steps for on boarding of schemes on SNA-SPARSH platform. The respective Administrative Department should contact Computer Cell of Finance Department for assistance on boarding of schemes and mapping of HoA for enabling release of funds under SNA-SPARSH system, along with a copy of the Mother Sanction of the new schemes.
Central Finance Commission Grants:
29. The release of General Basic Grants and General Performance Grants in respect of 15th Finance Commission Grants to PRIs and ULBs do not require approval of any action plan. It is the responsibility of the Administrative Department to ensure the releases are made within 10 days of the receipt of the grant.
Part V-Other Instructions
Personal Deposit Account/Bank Account:
30. Any deposit in Personal Deposit Account or in Bank Account of the implementation agency officer, even if permitted by Finance Department under a particular scheme, should not be construed as an exception to exercise delegation of financial powers as per this. Government Order.
31. No amount from PD account shall be transferred to any bank account held by the same organization without concurrence of Finance Department. Expenditure should be incurred from PD account by submitting bills to Treasury.
32.Deposit of funds into bank account or PD Account should not be done without specific concurrence of Finance Department. However, compensation for land acquisition under any scheme and releases under National or State Disaster Response fund can be transferred to DC PD/AC PD accounts presuming concurrence of FD. Release G.O, where
funds are being released to bank account/P.D accounts without mentioning the following details shall not be accepted by Treasuries.
Opening Balance
Releases made in the latest G.O.
Total fund available
Expenditure incurred
Expenditure as % of funds available
33. Presuming concurrence of Finance department, 1/4 of Budget Provision (RE) may be released to the Deposit accounts/State PFMS accounts of Development Corporations under the Department of SC/ST/BCW/MW during 4 quarter.
Bank Account:
34. (a) If the funds are released to Bank/PD Accounts, Administrative Department should ensure that the Bank Account is opened with the concurrence of Finance Department and that a G.O has been issued by Administrative Department to open such Bank Account.
(b) As per circular No. FD 51 TAR 2024, Date: 19.09.2024, Administrative Department should take action and report to Finance Department about any bank account opened without the concurrence of Finance Department & Government Order by Administrative Department.
35.Since Finance Department is verifying the bank balances in bank account of departmental officers through NTT module of Treasury, departments shall ensure expenditure actually incurred from out of such account as well as balance amount available in these for further releases while exercising the delegated powers. Administrative Departments should ensure that Bank accounts opened for transacting government funds are mapped in NTT Module of Treasury.
Intimation to Finance Department:
36. The release orders issued by Administrative Departments as per the financial powers delegated in this Government Order should be invariably sent to the concerned Expenditure Section of Finance Department.
Role of Department of Treasury:
37. (a) Department of Treasury shall not accept bills and process releases presented by the Administrative Departments unless it has been ascertained that the accompanying Government Order has been issued in line with the details prescribed above.
(b) For Central Sector Schemes & Centrally Sponsored Schemes, Treasury shall clear bills submitted by the Departments verifying the Credit Confirmation Slips issued by Finance Department without any loss of time as they are time bound.
(c) Treasury shall ensure that amount has not been transferred to Bank account from PD account and amount under central sector schemes has to be transferred only to SNA account (non-SNA sparsh scheme) and not to non-SNA account.
(d)Treasury should ensure that the amount has not been transferred to PD account or Bank account without the specific concurrence of Finance Department & Government Order by Administrative Department. Treasury shall verify the endorsement of approval by Finance Department for those non delegated schemes/HoAs listed in Annexure-1 of quarterly delegation of Finance Powers G.O., before accepting and passing of bills.
