TEAM HERALD
PANJIM: In a bid to shore up the State’s crumbling finances, the government Thursday directed all its departments to cut short its non-plan expenditure by 20 per cent till the end of financial year 2014-15, and imposed a ban on all foreign tours till June 2015. The departments have also been told not to exceed their monthly expenditure limit beyond 15 per cent for next two months.
While also imposing restrictions on organizing State funded workshops, seminars and events, the government has asked departments to reduce its electricity and water bills and use of fuel for cars by at least 15 per cent.
Secretary finance P Krishnamurthy, has issued the direction to all the departments for economic measures and rationalization of expenditures, in order to achieve the targets set in the Goa Fiscal Responsibility and Budget Management Act, 2006.
“It has been brought to the notice of the government that departments have the tendency of indulging in bulk purchases at the fag-end of the financial year, in order to incur expenditure of unspent budgetary provisions allotted for the financial year,” Krishnamurthy has said.
“Most of the time, these provisions exceed the requirements which leads to wasteful expenditure by the departments,” he said.
Till March end, the government has banned purchase of office infrastructures like furniture, computers, printers, telephones, office vehicles or cars or any other items. “These measures for rationalization of expenditure are intended to curb unnecessary revenue expenditure and provide funds for developmental activities,” he added.
Government has said that for the ongoing financial year 2014-15, every department shall effect a 20 per cent cut in non-plan expenditure excluding interest payments, re-payments of debts, salaries and pension. “No re-appropriation of funds to augment non-plan expenditure other than salaries and pensions shall be allowed during the current financial year,” the note circulated to all department heads, reads.
It has also clarified that not more than one fourth of the budgetary estimates shall be spent in the last three months of this financial year, except under the flagship schemes of the government and the advance payments or payments to the contractors shall be made. Also during the months of February and March, the expenditure of each department should be limited to 15 per cent of the Budget estimate and in no case it should exceed the limit.
Further, revisiting the instructions on economic measures, government has banned all visits abroad for study tour, conferences, seminars, including that of promotion of industry like trade and tourism, involving state government funds till June 2015. “However, those which are already approved as part of annual calendar year, are exempted,” the secretary said.
Also, except for ministers, all government officials and other delegates have been directed to travel only in the economy class.
