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Saturday, January 28, 2023

Govt put 25% cut to revenue expenditure; says expenditure would be based on liquidity position of the treasury

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Panaji: In what seems to be financial crunch, the Government has said that the expenditure for the six months- Quarter III & Quarter IV, will be done based on the liquidity position of the State Treasury.

Finance Secretary Daulat Hawaldar has issued an Office Memorandum (OM) putting a 25 percent cut in revenue expenditure of all the departments for the last quarters of the current financial year 2018-19, as a part of economic measures and rationalization of expenditure.

It has also capped expenses for the last three months of the FY to not more than 1/5th of budgetary estimates. For the month of February and March 2019, the budgetary estimate spending will be at 8 percent only.

“The expenditure for each month of the Quarter III – October to December 2018 and Quarter IV- January- March 2019 shall be done wholly based on the Monthly Expenditure Plan (MEP) vis-à-vis liquidity position of the State treasury,” OM said.

In order to effectively monitor the expenditure pattern as well as reduce rush of expenditure during the last quarter- January-March 2019, the departments are asked to prepare MEP (separately of Capital and Revenue account) as well as Monthly Revenue Plan (expected) in the performa appended, so that finance department can regulate the expenditure vis-à-vis, revenue collection keeping in mind disbursements under flagship schemes and expenditure on development, as well as enhanced provision for implementation of Seventh Pay Commission.

While finalizing the MEP, the departments are asked to bring into effect a 25 percent cut in revenue expenditure including interest payments, repayment of debt, payment of salaries and pension. OM further said that not more than 1/5th of the budgetary estimates shall be spent in last three months of this financial year, except under flagship schemes of the government.

“During the month of February and March, the expenditure of each department should be limited to 8 percent of the budget estimate and in no case should it exceed the limit prescribed. This limit is to be enforced both scheme wise as well as for the demands for grants as a whole,” the OM stated.

Hawaldar has specified that any excess expenditure required to be carried out, the same has to be done with prior concurrence of the Finance department.

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