Supplementary statement of expenditure, 2018-19 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
TK Pandey | Additional chief secretary-Finance
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Bhubaneswar, July 14: Citing the supplementary budget 2018-19 as an “adjustment budget”, the state government has instructed all departments not to seek large amounts of fund under one unit.
With pre-budget consultation process for the supplementary budget to start, additional chief secretary (finance) TK Pandey has written to secretaries of all departments in this regard.
“Supplementary statement of expenditure, 2018-19 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,” Pandey said in his letter.
Describing the present fiscal position of the state, he said the annual budget 2018-19 was formulated with an increase of about 12 per cent over 2017-18. To finance this budget, state’s revenue was projected to grow at 9.4 per cent and overall revenue at 11.7 per cent.
The state government is paying salaries and pensions to its employees and pensioners in revised scale as per recommendations of 7th pay commission from October 1, 2017, he added.
Pointing out that the government has paid 40 per cent arrear salary and 100 per cent arrear pension, he said, “This has increased the expenditure substantially.”
Besides, while formulating the budget 2018-19, the limit of fiscal deficit of 3.5 per cent of Gross State Domestic Product (GSDP) was fully utilised for financing the fiscal deficit.
The finance secretary made it clear that it would not be possible to make substantive provision under any unit in absence of adequate resource back up.
He advised the secretaries to give personal attention while preparing the supplementary proposal so that the proposals are based on actual need and should commensurate with their actual spending capacity.
As per the cash management system, the administrative departments are required to spend at least 60 per cent of the budgetary provision by December 2018. Proposal for substantive supplementary provision shall not be considered to any department in which actual expenditure (not release) by the end of June, 2018 is less than 20 per cent of the budgetary provision, he highlighted.
The departments were also asked to submit their proposal to clear outstanding house rents, electricity dues, water charges and municipal dues.
As for allocation of funds for infrastructure projects are concerned, Pandey advised the departments to make expenditure for ongoing works out of the lump provision while in respect of the new works token provision is to be made in the supplementary budget.
The state government asked the departments to submit their proposals online to Finance department by the end of first week of August, 2018.
PNN
