PANAJI
Ahead of the close of the financial year, the State government on Wednesday announced a sweeping austerity drive to rein in avoidable expenditure, imposing a ban on the creation of new posts and introducing strict curbs on departmental spending to ensure funds are available for development works.
In an Office Memorandum (OM) issued by Under Secretary (Finance) Naresh Gaude, outlined a series of strict directives aimed at rationalising expenditure during the last quarter- January to March- of the ongoing financial year. The government has urged all departments to exercise fiscal discipline and surrender anticipated savings, in line with the government’s objective of curbing last-minute and non-essential spending.
As part of the austerity measures, the government has directed that no department shall spend more than 20 per cent of its budgetary estimates during the final quarter of the financial year, except for flagship government schemes; departments should wherever possible reduce expenditure by up to 40 per cent till the end of the financial year.
“There shall be a ban on creation and upgradation of posts in all departments, autonomous bodies and corporations of the government until further orders,” the OM stated.
The government has also instructed all departments to ensure strict rationalisation of expenditure to meet the fiscal targets prescribed under the Goa Fiscal Responsibility and Budget Management (FRBM) Act, 2006. The intent, the OM notes, is to restrict revenue expenditure and make adequate provision for development activities under the Capital Account.
In another significant measure, every department has been directed to implement a 25 per cent cut in budgetary revenue expenditure, excluding interest payments, repayment of debt, salaries and pensions.
To further curb unnecessary expenditure, the government has imposed an immediate ban on the purchase of items such as furniture, electrical appliances, telephone instruments and office vehicles. The Accounts department has been instructed not to clear any bills related to such purchases. In cases of urgent requirement, departments will now have to seek prior approval from the Finance Department.
“The measures for rationalization of expenditure are intended to curb unnecessary revenue expenditure and provide funds for development activities under Capital Account as well as provision for payment of revised pay and arrears thereon,” the OM stated.
