Govt. asks all departments not to propose new schemes

State announces measures to curb expenses amidst pandemic

05/05/2020, ALOK DESHPANDE,MUMBAI

The State finance department on Monday announced belt-tightening measures to free up funds for fixed expenditure such as salary payments, as the virtual halt in economic activity has hit revenues..

The State government has asked all departments to not propose any new scheme in the current fiscal. It will also not be spending on any scheme it had undertaken from the start of the current financial year.

Public health, medical education, food and civil supplies and relief and rehabilitation have been designated as the priority departments. All others have been barred from issuing new purchase orders or tenders.

All departments have been directed to not undertake any construction activity, except that required for pre-monsoon work. Officials with the authority to give technical clearance have been asked not to do so.

Recruitment in all departments, except public health and medical education, has been stopped. All transfers of officials have been suspended, given that they would need to continue with relief work even after the pandemic is over.

Government officials’ transfers cost the State exchequer ₹100 crore to ₹200 crore as each official has to be given travel allowance to the new place of joining, sources said.

Departments have also been asked to return unspent money in their bank accounts to the State treasury before May 31, 2020. Officers who fail to do so will face a departmental enquiry, a government resolution (GR) said.

The resolution issued on Monday spelling out these guidelines, recorded that the State's current financial condition is likely to remain for the next two three months and revitalising the economy is a challenge..

“These measures are being taken as the decision to disburse March salaries to government employees in two instalments has not been a good enough measure,” said the GR.