MINISTRIES and agencies will no longer be able to 'sit' on state property under a new framework by the Finance Ministry (MOF).

A charge will be imposed on agencies which want to reserve state properties for planning and feasibility studies, said Minister of State (Finance) Lim Hwee Hua on Wednesday.

'This would encourage agencies to make land reservations only when necessary and for the optimal period of time,' she said.

She was responding to questions by Nominated Member of Parliament Gautam Banerjee on what was being done to ensure that land and buildings were managed more effectively.

The Auditor-General's annual report released last month found that agencies were not maximising the use of properties, and in many cases, were losing out on rental charges which they could have obtained.

The MOF has also reviewed and reduced office space norms. Agencies which exceed the stipulated norms will face surcharges and rental charges will be imputed to highlight opportunity costs.

MOF will look to impute this framework to staff apartments, chalets and institutional buildings.

Vacant property not required by public agencies will also be put on the market for lease where possible, said Mrs Lim.

She also assured Mr Banerjee that if ministries hold on to surplus cash, they will exact a certain carrying charge.