March Rush

March rush refers to the spending of a significant portion of the budget allocation in the final month of the fiscal year, i.e. March, in order to avoid any unspent funds being lapsed.

According to “rule of lapse” any part of grant (expenditure from consolidated fund of India) not spent within the financial year (April 1st to march 31st) expires at the close and goes back to the consolidation fund of India because it is not spent for the purpose it is allocated.

Hence, usually there will be rush to absorb this extra expenditure and there will be irrelevant, heavy spending at the end of financial year (March).

March Rush: Challenges

Time constraints: The need to spend a large amount of money in last quarter of financial year can lead to a rush in decision-making, which compromises the quality of spending and result in poor outcomes.

Lack of planning: In some cases, departments may not have a clear plan for how to spend their allocated fund, which can lead to haphazard spending or over-reliance on a few projects that may be less important.

Inadequate monitoring and oversight: The rush to spend funds can make it difficult for departments to keep track of expenses and ensure that the money is appropriately spent. This can result into corruption and mismanagement.

Delayed implementation: Rushed spending in March can result in delays in implementation of project, as departments don’t not have enough time to complete projects or services in a timely manner.

Unforeseen circumstances: The March rush can also make it difficult to manage for unforeseen circumstances, such as natural disasters or other emergencies, which may require additional spending that was not originally mentioned in budget.

March Rush: Impact

Poor quality of spending: Rushing to spend money in the last month of the fiscal year can lead to poor quality of spending, as it may results into unplanned expenditures.

Inefficient use of funds: In the March rush, departments spend funds on projects that may not be the most critical or urgent, or to overpay due to lack of competition or negotiation time.

Lack of accountability: The rush to spend funds in the last quarter or final month may also lead to a lack of accountability and transparency, as there is not enough time for proper documentation or auditing.

Neglect of long-term planning: The March rush can also lead to neglect of long-term planning and investments, as the focus is on immediate spending to avoid returning of fund.

Fiscal indiscipline: The practice of the March rush can encourages the attitude of “use it or lose it” among government departments, rather than a strategic and thoughtful approach to budgeting and spending.


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