Odisha Outsourcing Regulations 2025: Finance Dept Approval Now Mandatory

Bhubaneswar, July 25, (OT Webdesk) — In a decisive move to regulate manpower engagement across government departments, the Odisha Finance Department has issued new guidelines mandating prior approval for all outsourcing activities.

The directive, released on July 24 by Principal Secretary Saswata Mishra, IAS, aims to enhance transparency and curb unchecked hiring under the Odisha BPO Policy 2021.

Departments must now seek concurrence from the Finance Department before outsourcing personnel. While contract renewals are exempt from re-approval if manpower levels remain unchanged, any increase will require fresh clearance.

This measure is designed to prevent budgetary overruns and reinforce administrative accountability.

The circular also clarifies that Rule 12 of the Delegation of Financial Power Rules (1978, amended in 2025) cannot be used to bypass this requirement.

Delegated powers are limited to contract execution and expenditure sanctioning—not manpower approvals.

The directive has been circulated to top officials across all departments, signalling a firm stance on fiscal discipline and governance reform.