State directs depts against spending over 20% of their budgetary estimates

PANJIM: In a step towards rationalisation of expenditure and to provide funds for development activities during the last three months of the current financial year 2019-20, the State government has directed its departments not to spend more than 20 per cent of their budgetary estimates between January and March, 2020. The directions come at a time, when the Government borrowing is expected to cross Rs 2000 crore mark on December 31, following a loan of Rs 381 crore. 

Finance Secretary Daulat Hawaldar in an Office Memorandum issued on December 24, has asked all the departments to ensure rationalisation of expenditure and exchequer control-based expenditure management during the last quarter of the financial year. 

"For the current financial year, every department shall affect a 25 per cent cut in budgetary revenue expenditure excluding interest payment, repayment of debt, payment of salaries and pension," Hawaldar said. 

"Nor more than 20 per cent of the Budgetary estimates shall be spent in the remaining quarters of this financial year, except under flagship schemes of the government and wherever possible, may be reduced by 40 per cent till the financial year end," he said further. 

Further, in order to curb unnecessary expenditure, the Finance Department has imposed ban on purchase of items like furniture, electrical appliances, telephone instruments, office vehicles, etc. Accounts Department is directed not to clear any bills for purchase of such items. 

"The departments shall ensure that, for the months of January 2020 and March 2020, payment is made for the goods and services actually procured and other related expenses, in the previous months and the reimbursement of the expenses already incurred and not for new items of purchase, with exception of advance payments to contractors, loans and advances, etc," Hawaldar said. 

The Secretary said in order to effectively monitor the expenditure pattern as well as reduce rush of unnecessary expenditure during the last quarter, to exhaust the allotted budgetary provisions, it has been decided to obtain a Monthly Expenditure Plan (MEP) as well as Monthly Revenue Plan (MRP) in the pro forma appended, so that the Finance Department can regulate the expenditure vis-a-vis the revenue collection, keeping in mind the disbursements under flagship schemes and expenditure on development. 

The Departments are asked to submit their MEP and MRP by January 15.