Bhubaneswar: The state government has instructed all the departments not to seek huge amount of funds under one unit without adequate resource back-up as, it said, the supplementary budget 2019-20 will be an “adjustment budget”. Finance secretary AK Meena has written to secretaries of all the departments in this regard.
While formulating the Budge for 2019-20 financial year (FY), the limit of fiscal deficit of 3.5 per cent of GSDP was fully employed for financing the budgetary allocations. Accordingly, it would not be possible to make substantial provision under any unit in absence of adequate resource back-up, he said.
“Hence, supplementary statement of expenditure, 2019-20 is proposed to be purely an adjustment budget in which the administrative departments would be allowed to augment the provision in one unit only by locating equivalent savings in some other unit of expenditure,” Meena said in his letter.
In previous years, it is observed that the total amount surrendered is substantial, even more than the supplementary provision in some years. Therefore, the government has directed the departments to prepare the supplementary proposal based on actual need and actual spending capacity.
The announcement of schemes like Krushak Assistance for Livelihood and Income Generation (KALIA) has put huge financial burden on the state exchequer and also has disturbed the fiscal discipline of the state. Therefore, the finance secretary said, “Planning and Convergence department will not allow any substantial provision under any head under state sector schemes.”
The departments were also asked to submit their proposals to clear outstanding house rents, electricity dues, water charges and municipal dues.
As far as allocation of funds for infrastructure projects are concerned, Meena advised the departments to make expenditure for ongoing works out of the lump provision while token provision will be made in the supplementary budget in respect of new works.
The secretary further asked the departments to submit their proposals online to the Finance department by October 22.
