UT finance department imposes fresh cuts on expenditure

The UT finance department has issued fresh directions imposing strict restrictions on the spending of allocated expenditure.

The UT finance department has issued fresh directions imposing strict restrictions on the spending of allocated expenditure.

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For the next three months, there will be cuts in the budget estimates of 2020-2021 by 8% in October, 6% in November and 6% in December. In total, for the second quarter of 2020-2021, the spending of administration will be reduced by 20%.

Significantly, the restrictions on spending will also be applicable on the municipal corporation, which gets grant-in-aid from the UT.

There will be moratorium on all new recruitments, except for those ongoing. The DC rate wages of all outsourced employees have been freezed. Also, there is ban on increasing strength of contractual and outsourced employees.

There is complete ban on the leave travel allowance (LTA) and purchasing of new vehicles. UT has directed that amounts that remain unspent in a month/quarter will not be carried forward for next month/quarter.

The administration has also asked the UT electricity department to exempt government departments from late payment surcharge on bills.