MP Cabinet approves decentralisation of powers to enhance ‘ease of governance’

Bhopal: The Madhya Pradesh Cabinet, chaired by Chief Minister Mohan Yadav, convened on Tuesday and approved the Financial Powers Manual 2025, Part-1, marking a significant step toward decentralising powers and enhancing administrative efficiency.

Briefing the media on the Cabinet’s decisions, Urban Development and Housing Minister Kailash Vijayvargiya said the revised manual has been introduced in response to several key developments over the past 13 years, which rendered many provisions of the 2012 Financial Powers Manual, Part 1, outdated.

These include increased costs across expenditure heads, the emergence of new forms of operational expenses, and the need to remove obsolete expenditure categories, he said.

The updated document also includes new relevant expenditure items while eliminating outdated office equipment and materials, he further added.

The Finance department has been authorised to rectify clerical errors and make amendments in line with future requirements. A Hindi translation of the manual will also be released. The new financial powers will come into effect from July 1, 2025.

The revised manual aims to decentralise financial powers to ensure faster implementation and optimal utilisation of budgetary provisions within set timelines, Vijayvargiya said.

Under the new guidelines, administrative departments will have the authority to declare Budget Controlling Officers, engage consultancy firms or agencies, and appoint interns, he said.

“They will also be empowered to approve honorarium payments under Fundamental Rule 46 and write off excess payments related to pensions and subsidies,” the minister said.

Additionally, departments will now be able to approve the demolition of departmental buildings without seeking external approvals. Another key reform allows departments to sanction up to 80% of medical advances to employees without requiring consultation or clearance from the Health and Medical Department, he added.

Vijayvargiya emphasised that the new manual is part of the state government’s ongoing efforts to improve the ease of doing business in governance, and is expected to make government functioning more streamlined, responsive, and decentralised.