The finance department also informed other departments that the GSFC gives more return in form of interest on deposits and also offers flexibility to withdraw the deposits at any time
The Gujarat government has asked all offices under different departments to not park unutilised grants in banks. The departments have been directed to deposit the unspent amount of budget grants in the state's own Public Sector Undertaking (PSU), Gujarat State Financial Services (GSFS).
The finance department issued a government resolution (GR) for this on November 5, 2018. The department mentioned, "It has come to the notice of the government that many offices, PSUs, societies and institutions deposit unspent grants in their current or savings accounts of different bank with meagre interest or without interest. All the departments are hereby instructed to compulsorily deposit their unspent grants in GSFC in place of banks."
The finance department also informed other departments that the GSFC gives more return in form of interest on deposits and also offers flexibility to withdraw the deposits at any time.
The GR also mentioned that the unspent amount except for working capital which has to be utilised in period of ten days, will have to be compulsorily deposited.
"No representations made by departments in defence of deposits in banks are accepted and the in-charge officials should take notice of the same," the GR reads.
The finance department also clarified through GR that the different offices and departments defended their act to deposit money in banks by saying that banks offered services such as data entry operators and others for free, but the same was rejected.
It also instructed that it was the policy of the government to park funds in GSFS and therefore, departments should not deposit unspent amounts in banks to avoid criticism by the Comptroller and Auditor General (CAG).
The government has also given the responsibility to all the secretaries of departments to ensure that no unutilised funds are parked in banks.
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