In Chhattisgarh, spending in govt departments cut by 30% to fight slowdown

The order states that the expenditure limit in the first quarter of the financial year shall not exceed 20 percent of the total budget provision.

The Chhattisgarh government has lowered the expenditure limit in the departments after the decrease in revenue receipts due to economic slowdown caused by the Covid-19 pandemic.

The finance department has prepared a department-wise time schedule to discuss the economy keeping in mind the effect that the nationwide lockdown has had on the state and the economic growth. (Photo @bhupeshbaghel)

In an order issued on Monday, the departments will now be able to spend only 70 percent of their allotted budget.

The order states that the expenditure limit in the first quarter of the financial year shall not exceed 20 percent of the total budget provision. In case of excessive need by the department, the proposal will have to be submitted to the finance department with justification for relaxing this expenditure limit.

It has been directed that the departments, including construction departments, which made provision for expenditure under the capital expenditure head in the budget for the year 2020-21, the priority should be decided by the departments based on the urgency of the works.

“Departments should prioritise completion of the works under construction as much as possible and in case of new tasks becoming very urgent, they should be considered for approval as per the delegation of financial rights on priority basis. The new items for which the proposal for approval is to be forwarded to the finance department should be submitted only after deciding the priority with administrative approval of the minister of the department,” a press release issued by the government said.

The finance department has prepared a department-wise time schedule to discuss the economy keeping in mind the effect that the nationwide lockdown has had on the state and the economic growth.

As per Additional chief secretary, finance, Amitabh Jain, the total budget allocated to all the departments this year was about Rs 95,000 crore in the budget.

“By this cut of 30 percent in the allotted budget to the departments, we are hoping to save close to Rs 25,000 crore of the government’s money,” said Jain.

Senior BJP leader and spokesperson Sacchinand Upasane said that the state government has done nothing on development front since coming into power.

“Nothing on the development front has been done. All development works are stopped since the government was formed in 2018. Everyone in the state is facing debt. This decision will certainly not help them,” said Upasane.