Team Herald
PANJIM: For the effective implementation of the 7th Pay Commission from January 1, 2017, the Laxmikant Parsekar government has directed all departments to take up austerity measures by curtailing non-essentia,l non-plan expenditures. The government has imposed a ban on unwanted foreign tours of Ministers, MLAs and officers as well as promotional events on the international platform.
The government has borrowed Rs 700 crore from the market in last eight months, while its annual borrowing limit fixed by the Union Ministry Finance is Rs 1,907 crore. The borrowings have been spent on capital expenditure.
The government has proposed a series of economic measures to rationalise expenditure on various components, including social welfare schemes and developmental works from the financial year 2017-18.
“In a bid to implement 7th Pay Commission, which will have an additional burden of Rs 48 crore monthly on the government exchequer, it is required to either raise funds or cut down unwanted expenses to make up the additional requirement,” a senior official said.
“Increasing funds is not possible, as State cannot impose taxation beyond a certain limit. And also this being election year, any government would not like to take a risk,” the official added. “The only solution was to cut down non-essential, non-plan expenditure. The Ministers and departments will definitely feel the pinch but this was essential,” the official stated.
“For smooth implementation of the pay commission recommendation, it is required that the government take urgent measures to rationalise the expenditure on various components of its spending and at the same time explore additional revenues to mop up resources, in order to minimise the immediate effect, as well as the implications on the State finance over the next five years,” government said in a notification issued earlier this week.
The implementation of 7th Pay Commission to nearly 1,05,433 employees and pensioners will burden the State exchequer with additional monthly liability of Rs 48 crore, which would be further enhanced to Rs 70 crore with inclusion of other allowances like transport, house rent, etc.
Government needs immediate Rs 381.60 crore to deposit by this month-end towards the arrears from January 1, 2016 to December 31, 2016. It has already imposed ban on creation or revival of additional posts. It has now decided to ban purchase of vehicles, stationery, fuel consumption, paper, etc. It has also decided to review all development works undertaken by govt agencies.
The official said that the government has been successfully fulfilling its primary responsibility that includes payment of salaries, wages, pension, grants, funds under social welfare schemes, etc.
There is absolutely no issue on this front,” the official said.
He said that the State borrowing has been almost Rs 700 crore in last eight months but is within the prescribed limit fixed by the Centre. “State government has never gone beyond its borrowing limit, nor has it ever become a defaulter in payments,” the official added.
