PANJIM: A freeze on government recruitments, deferring expenditure sanctions for capital works, ban on foreign junkets and non-essential domestic tours, compulsory travel in economic class for ministers, MLAs till December 2020, are some of the austerity measures adopted by the State government to mitigate the financial crisis which has hit the State in view of the ongoing COVID-19 pandemic.
However, if any project or work is required to be undertaken urgently, this has to be justified and prior administrative approval of Chief Minister will be required.
Also, after government employees, the subsidised home loan scheme for MLAs, under which the legislators were entitled for housing loan at a negligible rate of 2 per cent, is also to be scrapped and the proposal is being worked out.
Finance Secretary Dawlat Hawaldar on Wednesday issued an office memorandum on rationalisation of expenditure due to the COVID-19 crisis, to all heads of the departments, following approval from the State Cabinet.
Addressing media persons after the cabinet meeting, Chief Minister Dr Pramod Sawant said that due to the rise in COVID-19 cases across the nation, there has been a continuous lockdown since March 2020, and the various restrictions in force during the period have affected economic activities across all sectors in the State, which has led to a fall in the State revenue collection.
“The current trend is expected to continue for the next few months, for which necessary steps in order to maintain fiscal prudence and discipline ought to be taken,” he said, while adding that the government is still studying the matter to adopt further measures.
The government has deferred all the expenditure sanctions for capital works, which have been granted administrative approval, of all the State government departments, autonomous bodies, PSUs, local bodies till December 2020, except the ones which are partly or wholly funded by the central government or deposit works. “Also, the ongoing works will continue,” the Chief Minister said.
Along with freezing recruitments, government has also deferred project specific borrowings till December end.
There is a ban on foreign tours and non-essential domestic tours funded by the State government. Also, there will be compulsory travel in economic class, for all tours funded by State, and new proposals involving hiring or outsourcing vehicles have been deferred and a ban imposed on purchase of furniture, electronic items, office vehicles, etc.
Urgent proposals, following the approval of the Chief Minister, will be placed before the Finance Department for expenditure sanctions.
Further, Sawant said that 30 per cent of the MLA’s gross salary will be deposited towards the Chief Minister Relief Fund for COVID, for a period of one year.
