The order, issued from Mahanadi Bhavan, applies to all state government departments, boards and offices. Officials said the decision aims to ensure prudent use of public funds and avoid last-minute spending driven solely by the need to exhaust budget allocations before the financial year ends.
In the directive, the Finance Department noted that it is often observed that during the final months of the financial year, departments initiate purchases of goods and services without actual necessity, merely to utilise the sanctioned budget. This practice leads to blocking of government funds and adversely affects financial discipline. The temporary restriction has been imposed to curb this trend and strengthen expenditure control.
As per the order, no fresh purchase orders will be issued after February 15, 2026, against provisions made in the 2025–26 budget. However, all valid purchase orders issued on or before February 15 must be paid by March 15, 2026. The responsibility for completing payments within the stipulated timeline will rest with the concerned departments. Any delay beyond the deadline will be treated as a lapse on the part of the department concerned.
The government has, however, provided exemptions for essential and ongoing activities. Procurement related to centrally sponsored schemes, central sector schemes, externally aided projects, grants received from the Central Finance Commission, and projects funded by NABARD, SIDBI, the National Housing Bank and special central assistance will continue without interruption.
In addition, limited procurement has been allowed for ongoing works of departments such as Public Works, Water Resources, Public Health Engineering, Rural Engineering Services and the Forest Department, restricted to materials required for use within the next one month. Purchases essential for jails, government hospitals, ESI hospitals, hostels and residential schools—including food, clothing and medicines—have also been exempted.
Other exclusions include procurement of nutrition foodgrains for anganwadi centres, transportation expenses, purchase of country liquor from distilleries, fuel, vehicle repairs and replacement, stationery expenses up to ₹5,000, other contingent expenditures up to ₹5,000, and purchases approved under the first supplementary budget.
Officials said the restriction will be lifted after the presentation of the state budget, following which departments will be allowed to resume procurement as per revised allocations and guidelines.
