Bhubaneswar: With a huge shortfall in revenue collection, the Odisha government has started implementing austerity measures. The state Finance Ministry issued Tuesday a notification asking all other departments to curb expenditure.
“We are going through a crisis of unprecedented nature due to the global pandemic COVID-19. It has posed challenges in every sphere of our life. The Odisha government has been fighting the pandemic with all its might to minimise the fatalities. However, the nation-wide lockdown/ shutdown has interrupted economic activities which resulted in shortfall in realisation of resources,” Finance Secretary Ashok Meena told all secretaries and heads of other departments.
“At the same time, higher expenditure is being incurred for COVID-19 management, generating employment and livelihoods for the most affected sections of the society. Therefore, all administrative departments are asked to prioritise their expenditure in order to limit expenses within the resources available with priority to make fiscal space for COVID-19 related expenditure,” added Meena.
The government has imposed complete ban on purchase of new vehicles for the next two years. Travel outside the country and air travel in business class using government funds have been banned. In exigencies, approval of authority one level higher than the present delegation would be required for air travel.
The officers have also been asked to avoid official tours. The finance secretary advised all to attend meetings through video conferencing.
“There shall be complete ban on journey by train in 1st class AC by government officers. New hiring of vehicles would require concurrence of the Finance Department. No officer while on tour shall be allowed reimbursement for occupancy in any hotel in Delhi, Kolkata, Mumbai and Chennai except when the home department has regretted availability of accommodation in the respective government Bhawans or Niwas,” read the circular.
The government has also put complete ban on creation of new posts except for Health and Family Welfare department. In case there is absolute necessity for creation of posts, the government will consider it only against abolition of equivalent posts with concurrence of Finance Department.
All redundant posts which have remained vacant for more than 5 years will be abolished automatically. All administrative departments have been asked to issue formal abolition order by July 31, 2020 and furnish a report to the Finance Department and GA department.
Similarly, the departments cannot engage new consultants. Also outsourcing and employing retired government employees without prior concurrence of the Finance department cannot be done.
Except Health and Family Welfare (H&FW) department, no department can implement new state scheme/project. However, if any new scheme is essentially required for emergent public service, it can be taken up following specific concurrence of the Finance Department.
The government has also announced capping of expenditure on continuing state schemes except those relating to livelihoods in agriculture and allied sector and expenditure for combating COVID-19 for the current financial year 2020-21.
Engineering departments asked to minimise the annual maintenance plan for the year 2020-21 limiting it to a level of 60% of the budget provision.
Complete ban order has been issued for purchasing of new equipment except medical and those that are required for internal security. Also there is a ban on expenditure for renovation, remodelling, furnishing and purchase of furniture and fixtures in government offices.
No expenditure for renovating and re-furnishing of offices, guest houses and government buildings will be permitted.
Expenditure of more than Rs 5,00,000 for repair and renovation of any government office building and more than Rs 2,00,000 for repair and renovation of any government residential quarter during this year will require prior approval of government, Meena said.
The Finance Department also said that sanction of new Long-term Advances and other advances are being suspended.
“There shall be complete ban on LTC for two years i.e. till March, 2022. Strict economy should be observed in the use of paper and other stationary articles,” Meena told all heads of departments.
The austerity measures will also be applicable to aided institutions, co-operatives and autonomous bodies for which the government provides funds.
PNN