No new schools, bridges, perks for govt employees: How Maharashtra will fund farm loan waivers
Mumbai city news: Here’s a look at five things that will be hit as Maharashtra struggles to provide for the waivermumbai Updated: Jul 18, 2017 10:16 IST
The Bharatiya Janata Party (BJP)-led government’s promise to waive loans worth Rs34,000 crore for farmers in Maharashtra will come at the cost of public spending on development schemes, projects and capital assets.On Friday, the state announced that revenue expenditure across all departments would be slashed by 30%. It also announced a 20% cut in capital expenditure.
Here’s a look at five things that will be hit as the state struggles to provide for the waiver:
1. The government’s development schemes and projects: The 30% slash in revenue expenditure across departments will have an impact on ongoing schemes and will impact new policies. The amount spent on social welfare, health and education will come down.
2. Infrastructure projects: Capital spending proposed for new bridges, roads, irrigation projects will be slashed by 20%. The government has asked the public works department and water resources officials to complete ongoing projects and not take up new ones.
3. Schools, colleges: The state will not grants permissions for new schools and colleges. Instead, it is likely to review existing aided institutions and cut back on the number of classrooms and teaching faculty where the demand has fallen.
4. Government employees’ perks: The state has asked its employees to cut back on air travel and use video conferencing instead. This involves a stay on business air travel earlier permitted for principal secretaries and high-ranking officials. Buying new vehicles across departments has been banned. The state has also asked government employees to reduce fuel expenses. Departments have been asked to cut back on expenses ranging from stationery to air conditioning.
5. New loans by state departments: When it comes to state grants, central schemes will be prioritised, and not much else. The finance department has asked departments to route back funds that were unspent during the last fiscal year, and diverted to various public sector units, back to its kitty. It has banned individual departments from raising funds or applying for loans.
First Published: Jul 01, 2017 13:22 IST