Fresh austerity measures in UP to fund Covid -19 and other work

Keeping in view the special circumstances, departments should take all necessary and effective action to enforce financial discipline and austerity, said chief secretary RK Tiwari in an order.

Lucknow: Following the Centre’s move to restrict expenditure of various ministries to 20 per cent in the second quarter of 2021-2022, the state government has also initiated fresh measures for austerity in Uttar Pradesh.

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It has asked departments to enforce cash management measures to ensure availability of sufficient funds to fight Covid-19 and carry out other necessary work in the state. It has asked departments to review all the ongoing projects and give priority to implementing such ongoing and new projects that may be completed in 2021-2022.

It has asked departments to cut down budgeted expenditure on certain heads, not buy any new vehicles and restrict travel of senior officers to economy class only.

Chief secretary RK Tiwari sent fresh directives in this regard on July 31 to all additional chief secretaries, principal secretaries, secretaries and heads of department while referring to World Health Organisation (WHO) decision to declare the Covid-19 a pandemic and measures needed to contain it.

“(1) Different departments should make efforts to get in time from central ministries the central share in centrally sponsored schemes being implemented in the state. (2) Different departments should review all the schemes and priority be given to such ongoing or new schemes that may be completed in 2021-2022,” said Tiwari in his order.

“(3) Appropriate allocation of funds has been made in the state budget for 202102022 under heads of office expenditure, travel expenditure, leave travel facility, maintenance of computers, buying stationary, printing and publishing. Keeping in view the special circumstances, the departments should cut down expenditure against budgetary allocations under these heads. (4) Departments should not buy new vehicles,” he said.

Tiwari further said, “(5) Necessary arrangements for outsourcing should be made against old vehicles being put out of use and special attention should be paid to expenditure on fuel and maintenance of vehicles. (6) Travel for government work should be minimized and all possible meetings should be held via video conferencing. Travel of officers entitled for air travel should be minimised to economy class. Executive class and business class travel will remain banned in the current financial year. (7) Only necessary withdrawal of funds should be made against the provisions made in the budget. (8) Departments should take all necessary and effective action to enforce financial discipline and austerity.”

He also said, “The new directives will be applicable to all local bodies, autonomous institutions/development authorities and state universities.”

“It is justified if the government is curtailing wasteful expenditure in the name of austerity. However, the axe should not fall on expenditure on schemes for development and social security etc. An increase in public expenditure is necessary to revive and boost the economy and infrastructure projects having longer timeline for completion should not suffer,” said Yashvir Tyagi, former professor, department of economics, Lucknow University.