In a bid to inculcate fiscal management in its departments, the Goa government has issued a circular, imposing restrictions, including a 25% cut in the budgetary revenue expenditure apart from payment of interest payments, salaries and pension and repayment of debt.
State Under Secretary (Finance) Pranab Bhat, in the circular, has also banned the creation of new posts in all departments, autonomous bodies and corporations of the government until further orders.
While the circular was issued on Dec. 21, 2023, the restrictions came into force from Jan. 1.
The circular stated that these measures are mandated to achieve the targets and standards set out in the Goa Fiscal Responsibility and Budget Management Act, 2006, provide adequate funds for developmental activities and restrict and manage expenditure.
For the current financial year 2023-24, every department will affect a 25% cut in budgetary revenue expenditure, excluding payment of interest, salaries and pension, and repayment of debt, it said.
As per the circular, not more than 20% of the budgetary estimates shall be spent in the remaining quarters of this financial year, except under flagship schemes of the government and wherever possible, may be reduced by 40% till the end of the financial year.
Apart from these restrictions, there shall be a ban on the creation of new posts in all departments, autonomous bodies, and government-run corporations until further orders, it was stated.
The government has banned the purchase of several items for various departments till March 31, and the director of accounts has asked not to entertain any bills of purchases of the restricted items.
The Directorate of Accounts is required to ensure that the expenditure under each demand of grants does not exceed the restrictions put above unless specifically authorised by the finance (R&C) department, the circular stated.
The departments have to ensure that from January till March, payment is made for the goods and services that are procured and other related expenses in the previous months and the reimbursement of expenses already incurred and not for new items of purchase of goods and services, except advance payment, payment to contractors for work orders already issued.
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