Team Goemkarponn
PANAJI: With the financial year nearing its end, the State government on Wednesday announced a stringent austerity drive aimed at curbing avoidable expenditure and ensuring the availability of funds for development works.
An Office Memorandum (OM) issued by Under Secretary (Finance) Naresh Gaude outlined a series of cost-cutting measures to be implemented during the final quarter of the ongoing financial year, from January to March. The memorandum calls on all departments to strictly observe fiscal discipline, avoid last-minute spending, and surrender anticipated savings.
As part of the measures, departments have been instructed not to utilise more than 20 per cent of their sanctioned budget estimates during the last quarter, except in the case of flagship government schemes. Departments have also been advised to reduce expenditure by up to 40 per cent wherever possible until the end of the financial year.
The government has imposed an immediate ban on the creation and upgradation of posts across all departments, autonomous bodies and government-owned corporations, to remain in force until further orders.
To meet fiscal targets under the Goa Fiscal Responsibility and Budget Management (FRBM) Act, 2006, departments have been directed to rationalise expenditure with a clear focus on restricting revenue spending and ensuring adequate provision for development activities under the Capital Account.
In a major cost-control step, all departments must implement a 25 per cent cut in revenue expenditure, excluding unavoidable commitments such as salaries, pensions, interest payments and debt repayment.
Further tightening controls, the government has placed an immediate ban on the purchase of furniture, electrical and electronic appliances, telephone instruments and office vehicles. The Accounts department has been instructed not to clear bills for such procurements. Any urgent or unavoidable purchase will now require prior approval from the Finance Department.
The OM states that the austerity measures are intended to eliminate non-essential revenue expenditure and redirect funds towards development projects, as well as to meet financial obligations arising from revised pay scales and payment of arrears.
