FinMin to seek asset monetisation report card from ministries during pre-Budget talks

In the pre-budget discussion on central allocation with the various ministries and government departments beginning from October 10 as part of the budget making exercise, the finance ministry is set to seek details of progress on the national monetisation pipeline, while also keeping a tight leash on the expenditure exceeding a particular threshold, and requirements of the autonomous bodies.

The consultation process to finalise the revised estimates (RE) for the current financial year and the budget estimates for FY24 will be completed by November 10, according to the Ministry of Finance.

A top government source says the ministry will review the progress made by various central ministries on the national asset monetisation pipeline announced by the Centre in last year's budget in the upcoming meetings.

"Each of the ministries, including the frontline ones like the ministry of railways, and highways, will have to explain progress on asset monetisation during the pre – budget deliberations," the source says. Monetisation pipeline aims to generate revenue of ₹6 lakh crore form under-utilised brownfield projects and unlock value.

The government faced criticism from the Opposition for putting national assets on the block but finance minister Nirmala Sitharaman has stressed in the past that the move is not akin to sale of government assets, which will be vested back to the government after a fixed duration.

During the deliberation with the ministries the finance ministry is also likely to seek details of the autonomous bodies under the ministries along with an explanation as to why funding for such bodies should continue.

The finance ministry is also expected to keep a tight leash on the expenditure and has already asked the various ministries to submit an explanation in cases where there is a more than 10% variation between BE and RE, FY23 and RE, FY23 and BE, FY24.

Also, for programmes more than ₹100 crore, the ministries will need to submit to Centre the details of physical targets. In case of capital projects, the ministries have been asked to submit the purpose, cost, capacity, and completion deadline of the project.