Pimpri-Chinchwad Municipal Commissioner Shekhar Singh has directed department heads to submit any proposed changes to the budget through the Accounts and Finance Department, rather than directly to the Commissioner’s office.

Additionally, the Commissioner has instructed that information on departmental liabilities must be submitted to the Accounts Department by the 5th of each month, and funds allocated for road work projects are not to be transferred to other activities.

This decision follows concerns about frequent changes to budget provisions and the diversion of funds after budget implementation begins.

Department heads were previously found to request increased or reduced budget allocations without proper planning, leading to financial strain on the corporation’s treasury. The Commissioner has approved a new financial policy designed by the Accounts and Finance Department to tackle these issues.

The implementation of the budget officially begins on April 1st, but some department heads submit proposals for capital and revenue projects without thorough assessments.

As a result, frequent requests for changes in budget allocations and proposals for new projects not originally included in the budget are made.

Despite repeated instructions to adhere to financial guidelines, departments have often failed to comply, prompting the Commissioner to warn that disciplinary action will be taken against those responsible for financial mismanagement.

Under the new policy, it will be mandatory for departments to allocate at least 25% of the estimated cost for new projects at the time of their proposal.

If a project is expected to be completed within the financial year, the full or half of the required funds must be allocated. Additionally, administrative approval for projects cannot exceed 1.25 times the average revised budget of the previous three years.

Departments that exceed their allotted budget and create financial challenges for the corporation will see their heads held accountable. The strict guidelines are expected to improve financial planning and management within the corporation, according to Praveen Jain, Chief Accounts and Finance Officer of Pimpri-Chinchwad Municipal Corporation.