Thiruvananthapuram: Struggling to find funds to meet extra expenses for the Onam season, the Kerala Government has decided to impose massive cuts on expenditure.
The government is likely to cancel the provision of salary advance given during the Onam season. The welfare pension will be granted for only two months instead of three.
The government expects an additional expenditure of Rs 8,000 crore this Onam season which commences later this month. About Rs 2,880 crore alone is required to pay the three-month arrears in welfare pension.
The Finance Ministry has urged all government departments to reduce their expenditures for the next financial year in view of the severe fund crunch being faced by the government this year.
In a circular issued by the Finance Department seeking suggestions for the State budget for the year 2024-2025, the departments have been advised not to increase any non-planned expenditure over that in the current year, except the salary bill for government employees.
The departments must prepare the estimate of expenditures after taking this advice into account.
Govt advisory in a nutshell
In a bid to increase the government’s revenue, the departments are urged in the circular to inform the Finance Ministry about the arrears yet to be recovered and the reason for the delay. The sectors from which the dues are pending also need to be conveyed.
If loans given out could not be recouped, the reason for it also should be explained. If a department has any dues to pay to the government, funds would be allocated to that department only after deducting the amount.
Accuracy must be maintained in preparing the budget estimate. No situation should arise later where the amount mentioned in the estimate needs to be altered. If the actual expenditure exceeds the estimated amount, the reason for it should be explained, stated the circular.
Cost-cutting should be carried out in all sectors. Schemes that are not profitable should be wound up and repairs that are not urgent should be deferred. Heads of departments must scrutinize each scheme and slash the expenditure as much as possible, the circular further states.
When a project is wound up, the employees who were engaged for it should be re-deployed. The departments must furnish a list of employees who become redundant. Each scheme should be checked with a critical eye to see whether it needs to be continued while unnecessary schemes should be dropped.
Chief engineers should not send for approval any project that has not been sanctioned by the government. Recommendations such as buying new vehicles should be made only after taking into account the orders regarding cost-cutting. The departments must submit the estimates of non-plan expenditures before September 5 and plan outlays before September 10, states the circular.
