Overview

• Chief Minister Mohan Yadav-led Cabinet ratified Part 1 of the Finance Powers Manual 2025 on May 27 to empower administrative departments.
• The manual takes effect July 1 and lets departments designate budget controlling officers and hire consultants, interns and agencies for project work.
• Under the new rules, departments can sanction up to 80 percent of medical advances, approve building demolitions and write off excess pension payments independently.
• The Finance Department is authorized to correct clerical errors and make future amendments to keep the manual aligned with evolving expenditure categories.
• The overhaul responds to a 13-year rise in costs and introduces new expenditure categories to streamline administrative procedures and improve ease of doing business in government operations.