In order to keep fiscal deficit within the target limit, the finance ministry has asked ministries and departments to restrict their expenses with revised estimates.
The communication comes ahead of the Union Budget 2022 - 23, which is expected to be unveiled on February 1.
In an office memo requesting proposals for the third and final batch of Supplementary Demands for Grants, the economic affairs department under the finance ministry asked ministries and departments to submit their proposals by February 10.
The grant-controlling authority must invariably identify savings within the grant to ensure that the infructuous or inflated supplementary demands are weeded out and the eventuality of surrender after obtaining supplementary grant is avoided, as well as the infructuous or inflated supplementary demands.
The proposal for Supplementary Demands for Grants could be projected after a thorough and objective assessment of additional requirements of funds, it said.
It said all ministries and departments have been asked to contain the expenditure within the approved Revised Estimate ceilings.
The federal government estimates a deficit of 6.8 per cent of gross domestic product GDP in the current financial year ending March 31.
The fiscal deficit is an indication of the government's borrowing to meet the shortfall between expenditure and receipts from taxes and other sources.
The demand proposal should be made after a thorough review of the savings within the Grant, according to the memo.
No Supplementary proposal, including for a token amount, should be proposed in cases where re-appropriation can be made without the requirement of Supplementary as per the extant provisions.
It said that the requirement could be met by re-appropriation of savings after obtaining approval from competent authority.
The cases that will be eligible to be incorporated under such demands include those where advances from the Contingency Fund of India have been granted.
Payments against court decree will be included as well as in cases where the finance ministry has specifically advised moving of supplementary demand in the budget session, it said.
The two-phase budget session begins on January 31 and continues until April 8.