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PANAJI
The Finance Department has issued a fresh order elaborating the tightening of purse strings for the remaining three months of the financial year restricting it to not more than 12% of the budgetary estimates.
The memorandum issued by Finance Secretary Daulat Hawaldar has also further specified that for the months of February and March, the expenditure of each department should be limited to 7% of budget estimate "and in no case should it exceed the limit prescribed."
A similar circular was issued last year but the expense was restricted to 25% for the last three months and 12% for the last two months signalling further tightening by the government this time around.
"Not more than 12% of the budgetary estimates shall be spent in the last three months of this financial year, except under the flagship schemes of the government or centrally sponsored schemes and wherever possible, revenue expenditure may be reduced by 40% till the financial year-end. Further, for the last two months the expenditure of each department should be limited to 7% of the budget estimate and in no case should it exceed the limit prescribed," the memorandum reads.
The memorandum says the directions are necessary since "Departments have the tendency of indulging in bulk purchases at the fag end of the financial year in order to incur an expenditure of unspent budgetary provisions allotted for the given fiscal year."
"Most of the time these provisions exceed the requirement which leads to wasteful expenditure by the Departments," the order reads as it proceeds to ban the purchase of office furniture, computers, printers and computer-related peripherals, air conditioners and vehicles until March 31, 2018.
The Finance Secretary has directed the Directorate of Accounts not to entertain any bills of such purchases and if they are made and submitted in the following financial year, they shall also not be entertained.
During the months of January to March, payment should be made for goods and services actually procured and other expenses in the previous months and the reimbursement of expenses already incurred and not for new items with the exception of payments to contractors for work orders already achieved, loans and other exceptional cases with the approval of the finance department.
PANAJI
The Finance Department has issued a fresh order elaborating the tightening of purse strings for the remaining three months of the financial year restricting it to not more than 12% of the budgetary estimates.
The memorandum issued by Finance Secretary Daulat Hawaldar has also further specified that for the months of February and March, the expenditure of each department should be limited to 7% of budget estimate "and in no case should it exceed the limit prescribed."
A similar circular was issued last year but the expense was restricted to 25% for the last three months and 12% for the last two months signalling further tightening by the government this time around.
"Not more than 12% of the budgetary estimates shall be spent in the last three months of this financial year, except under the flagship schemes of the government or centrally sponsored schemes and wherever possible, revenue expenditure may be reduced by 40% till the financial year-end. Further, for the last two months the expenditure of each department should be limited to 7% of the budget estimate and in no case should it exceed the limit prescribed," the memorandum reads.
The memorandum says the directions are necessary since "Departments have the tendency of indulging in bulk purchases at the fag end of the financial year in order to incur an expenditure of unspent budgetary provisions allotted for the given fiscal year."
"Most of the time these provisions exceed the requirement which leads to wasteful expenditure by the Departments," the order reads as it proceeds to ban the purchase of office furniture, computers, printers and computer-related peripherals, air conditioners and vehicles until March 31, 2018.
The Finance Secretary has directed the Directorate of Accounts not to entertain any bills of such purchases and if they are made and submitted in the following financial year, they shall also not be entertained.
During the months of January to March, payment should be made for goods and services actually procured and other expenses in the previous months and the reimbursement of expenses already incurred and not for new items with the exception of payments to contractors for work orders already achieved, loans and other exceptional cases with the approval of the finance department.
