The Department of Expenditure (DoE), Ministry of Finance, has consistently advanced fiscal governance and public welfare through innovative financial management and policy reforms. A pivotal achievement is the implementation of Direct Benefit Transfer (DBT) via the Public Financial Management System (PFMS). Public Financial Management System makes a direct and significant contribution to the Digital India Initiative of Government of India enabling Direct Benefit Transfer for Ministries/departments in Government of India. This initiative has supported the Digital India mission by enabling real-time, transparent fund transfers for over 966 schemes covered under Direct Benefit Transfer (DBT) initiative in 2025-26. In FY 2025-26, 210.56 crore. transactions were reported & ₹2.87 Lakh Crore were paid to beneficiaries in FY 2025-26 till 31st December 2025. Centrally Sponsored (CS) Schemes and Central Sector Schemes (CSS) are on the PFMS and all the Major Banks including RBI have interface with PFMS.

ACHIEVEMENTS OF PFMS

I. Scale of Transactions and Payments

ii.  Breakup of total number of Schemes

iii.  Month-wise Transactions (Progressive) and Payment (Progressive) for FY 2025- 26

iv.  Major DBT Schemes FY 2025-26 (till Dec – 2025)

v.   Major citizen centric initiatives taken to improve DBT Process

a)       DBT Conclaves:-

DBT Regional Conclaves & State Workshops were successfully held in Guwahati, Bhopal, Jaipur, Pune, Bengaluru, and Lucknow, covering 26 States and 2 UTs. Each event saw 150–250 senior officials, including Chief Secretaries and Finance Secretaries, come together for training and support on SNA-SPARSH, DBT-SPARSH, and PFMS modules.

• Beneficiaries shared their experiences, praising PFMS for timely, transparent, and efficient fund disbursement, which has improved service delivery and reduced delays. The workshops also provided a platform for states to discuss challenges, share progress, and receive guidance from CGA and PFMS teams.
• These conclaves reinforced Centre-State collaboration, showcasing PFMS’s commitment to transparent, accountable, and effective public fund management, laying the foundation for scaling up SNA-SPARSH across India.

b)    DBT Open House:-

DBT Open House started on 10.01.2024 to promote citizen-centric governance by allowing beneficiaries to directly connect with PFMS. It provides a platform for beneficiaries to raise their queries and grievances with PFMS officials. The open house is held from 12 noon to 1 pm on all working days. As of December-2025, details of DBT sessions are as under:-

• No. of sessions: 476
• Instances of participation from Ministries/States/Institutions: 1,273
• No. of issues raised: 1,358
• No. of issues resolved: 1,358
• No. of logins: 5,037

c)    Customer Redressal Management:-

CRM has been started to streamline grievance resolution across PFMS, CGA, and DoE through automation, multi-channel communication, feedback tools, and analytics. It is effectively managing over 150,000 grievances annually, enhancing coordination with State Treasuries, banks, and other external systems.

MANUAL FOR PROCUREMENT OF GOODS

Department of Expenditure has published three manuals viz. Manual for Procurement of Goods, 2017; Manual for Procurement of Consultancy and other Services, 2017 and Manual for Procurement of Works 2019. Subsequently, all three Procurement Manuals (namely Goods, Services & Works) have been updated (in June 2022) and all procurement related  instruction issued by Central Vigilance Commission (CVC) have been subsumed into these Manuals.

Now, this Department has thoroughly revised these Manuals and issued following

revised/ afresh Manuals:

i. Manual of Procurement of Goods, Second Edition, 2024

ii. Manual for Procurement of Consultancy Services (Second Edition, 2025)

iii. Manual for Procurement of Non-Consultancy Services (developed afresh)

iv. Manual for Procurement of Works, Second Edition, 2025

These Manuals are available at the Website of Department of Expenditure i.e. doe.gov.in

Many developments in public procurement policy from the last revision of manual such as policy initiatives, clarification, stakeholders’ deliberations were subsumed in the revised manuals. The revised manuals mainly focused on ease of business for suppliers and clarify for the procurement professionals.

Wide range of topics have been rewritten such as clarifying extent of applicability to various entities, categorization of procurements, conflicts of interest, interest-free advance payments, new forms of performance securities, outsourcing procurement, auto-extension of bids, capping price variation and liquidated damages, mitigating cartel information, reverse auction, rate contracts, withdrawal by L1 bidders etc.

SCHEME FOR SPECIAL ASSISTANCE TO STATES FOR CAPITAL EXPENDITURE

Capital expenditure in the economy has a higher multiplication factor and crowds-in private investment and raises supply side capacity for enhancing economic growth. Accordingly, the Union Government, in October, 2020, launched a ‘Scheme for Special Assistance to States for Capital Expenditure’ under which 50-year interest free loan is provided to assist the States in boosting capital expenditure and enhance the productive capacity of the economy. In view of the extremely positive response of the State Governments to the Schemes and their request for continuing the Scheme, the Scheme was continued in 2021-22, 2022-23,2023-24, 2024-25 and 2025-26 with enhanced allocation. The outlay under the scheme has increased from ₹ 12,000 crore in the FY 2020-21 to ₹ 1,50,000 crores in 2025-26.

In 2025-26, the scheme comprises of total ten parts, from Part-I to Part-X. Amount of ₹ 68,000 crore has been allocated under Part-I (Untied) of the Scheme, under which States can propose capital projects of their choice to be funded under the scheme. An outlay of ₹ 80,000 crore is for reform centric and sector specific areas. The reforms envisaged under the scheme are:

1. Mining Sector Reforms

2. Scrapping of Old Vehicles and Electronic Enforcement of Road Safety
3. Land-related Reforms by State Governments in Rural Areas
4. Digital Public Infrastructure for Agriculture
5. Land-related Reforms by State Governments in Urban Areas
6. Efficiency in Financial Management
7. Urban Planning Reform

So far, ₹ 83,595 crores has been disbursed to State Governments under SASCI 2025-26 till 04.01.2026. Further, a total amount of ₹ 4,49,845 crores has been released to the state governments under SASCI since its inception i.e. from 2020-21 to 2025-26 (till 04.01.2026). Year-wise releases under SASCI scheme are given below - (₹in crores)

NET BORROWING CEILINGS (NBC) FOR THE YEAR 2025-26

As per the recommendations of Fifteenth Finance Commission [XV-FC], the normal Net Borrowing Ceiling of 3 percent of Gross State Domestic Product (GSDP) has been allowed to States for FY 2025-26.The net borrowing of the States for the year 2025-26 has been fixed at Rs. 10,29,659 crore at 3% of GSDP of the States.

Consent of Government of India of Rs. 9,79,564 crore for raising OMB and of Rs. 95,150.20 crore for availing Negotiated loan during FY 2025- 26 have been issued under Article 293 (3) of Constitution of India as on 04th January, 2026.

ADDITIONAL BORROWING OF 0.5% OF GSDP LINKED TO PERFORMANCE IN POWER SECTOR

Fifteenth Finance Commission (XV-FC) has recommended performance based additional borrowing space of 0.50 percent of Gross State Domestic Product (GSDP) to States in the power sector.

This additional borrowing of 0.50 percent of GSDP is over and above the normal net borrowing ceiling.

The primary objectives of granting financial incentives for undertaking power sector reforms are to improve operational and economic efficiency within the sector and promote a sustained increase in paid electricity consumption.

To be eligible for these incentives, State governments must undertake a set of mandatory reforms and meet stipulated performance benchmarks. The required reforms include:

• Progressive assumption of responsibility for losses of public sector power distribution companies (DISCOMs) by the State Government.
• Transparency in the reporting of financial affairs of power sector including payment of subsidies and recording of liabilities of Governments to DISCOMs and of DISCOMs to others.
• Timely rendition of financial and energy accounts and timely audit.
• Compliance with legal and regulatory requirements

Upon completion of these reforms, a State's performance is evaluated based on specific criteria to determine its eligibility for the incentive amount which may range from 0.25% to 0.5% of GDP based on performance. The evaluation criteria include:

• Percentage of metered electricity consumption against total energy consumption, including agricultural connections.
• Subsidy payment by Direct Benefit Transfer (DBT) to consumers.
• Achievement of targets for reduction in Aggregate Technical & Commercial (AT&C) loss.
• Meeting the target of reduction in Average Cost of Supply and Average Realizable Revenue (ACS-ARR) Gap.
• Reduction in cross subsidies.
• Payment of Electricity bills by Government Departments and local bodies.
• Installation of prepaid meters in government office.
• Use of innovations and innovative technologies

The initiative has spurred State Governments to initiate the reform process, and several States have come forward and submitted details of the reforms undertaken and achievements of various parameters to the Ministry of Power.

Based on the recommendations of the Ministry of Power, the Ministry of Finance has granted permission to raise financial resources of Rs. 1,48,361 crore through additional borrowing from 2021-22 to 2024-25 to 13 State Governments for undertaking power reforms.

For the Financial year 2025-26 also, states are eligible for additional borrowing of 0.5% of GSDP (Approx Rs. 1,71,612 crore) linked to performance in power sector as per the guidelines issued by this Department dated 02.09.2025.

FINANCE COMMISSION GRANTS TO STATES

Finance Commission Division (FCD), Department of Expenditure is mandated to release grants to States as per accepted recommendations of Central Finance Commissions. It also undertakes processing of and follows up action on the various recommendations of the Central Finance Commission. Currently award of 15^th Finance Commission is being implemented for the period 2021-22 to 2025-26.

For the year 2025-26, the 15^th Finance Commission has recommended the grants-in-aid namely, Post Devolution Revenue Deficit Grant, Grants to Local Bodies, Health Sector grant, Central share of State Disaster Response Fund and State Disaster Mitigation Fund. We also release additional Central assistance from National Disaster Response Fund (NDRF) and National Disaster Mitigation Fund (NDMF) to the State Governments in case of severe disasters.

Based on the recommendations of Ministry of Home Affairs, Ministry of Finance (Department of Expenditure) released a total amount of Rs. 18276.4 crore as Central share of State Disaster Response Fund and ₹ 5288.8 Crore as Central share of State Disaster Mitigation Fund for the F.Y 2025-26. Additionally, a total assistance of Rs.994.05 crore has been released for Expansion and Modernization of Fire Services in the States.

The details of funds released as per the recommendations of 15^thFC to the State Governments for various components during current financial year 2025-26 are as under:

                                                                                                                                       (Rs. in crore)

CENTRAL PAY COMMISSION (CPC)

The Government has constituted the 8^th Central Pay Commission (CPC) to review pay, allowances, pensions, and service conditions of central government employees.

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