The government has issued directives on expenditure management, economy, austerity measures and rationalization of expenditure.
“In order to promote fiscal discipline, without restricting the operational efficiency of the Government and to ensure balanced pace of expenditure, all the Government Departments and Autonomous Bodies funded by the Government are hereby ordered to adhere to economy and austerity measures,” said Atal Dulloo, Financial Commissioner Additional Chief Secretary.
The circular stated that during the last quarter of the current financial year, the expenditure should be
limited to 30% of budget allocation and in the month of March, the expenditure should be limited to 15% of the Budget Estimates.
“It is also considered desirable that in the last month of the current financial year, payments may be made only for the goods and services actually procured and for reimbursement of expenditure already incurred,” it read.
The circular stated that no amount should be released in advance (in the last month) with some exceptions including advance payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations; any loans or advances to Government servants etc. or private individuals as a measure of relief and rehabilitation as per service conditions or on compassionate grounds and any other exceptional case with the approval of the Finance Department.
The departments were directed that a rush of expenditure on procurement should be avoided during the last month of the current financial year so as to ensure that all procedures are complied with and there is no infructuous or wasteful expenditure.
The circular stated that utmost economy shall be observed in organizing Conferences/ Seminars/ Workshops. “Only such conferences, workshops, seminars, etc. which are absolutely necessary, should be held.”
“Holding of exhibitions/ fairs/ seminars/ conferences outside J&K is strongly discouraged except in the case of exhibition for tourism/art & craft/investment promotion,” it said adding, “There shall be complete ban on holding of meetings and conferences at private hotels. Government buildings/ Premises should be utilized for holding meetings and conferences instead.”
10% economy cut is imposed on conduct of camps and seminars out of the Budget Estimates 2021-22
The circular stated that travel expenditure should be regulated so as to ensure that each Department remains within the allocated budget. “Re-appropriation/ augmentation proposals on this account will not be entertained. International travel shall not be allowed unless specific permission is granted by the Finance Department.”
“Within the country, the officers should travel only by economy class regardless of entitlement. Facility of Video Conferencing may be used effectively and travel for the purpose of attending meetings should be avoided to the extent possible. In all cases of air travel, the lowest air fare ticket available for entitled class shall be availed,” it added.