Austerity measures

At a time when the economy is strained by the on-off Covid induced lockdowns in last and half years the Jammu and Kashmir government has announced the austerity measures to boost the economy without hampering the operational efficiency of the government. The austerity measures include 10% economy cut on OE, LTC, Telephone, POL, Research & Survey and Hospitality & Sumptuary, conduct of camps and seminars and cut on travel expenses out of the Budget Estimates 2021-22.The order issued by Atal Dulloo, financial commissioner, additional chief secretary, says 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 have been ordered to adhere to economy and austerity measures.All the government departments and autonomous bodies were ordered to maintain balanced pace of expenditure for which 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. Hence, no amount should be released in advance (in the last month) with the exception of 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.Any other exceptional case with the approval of the Finance Department shall be 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. Director Finance, Financial Advisor (s) are advised to specially monitor this aspect in their respective departments.A 10% economy cut is imposed on OE, LTC, Telephone, POL, Research and Survey and Hospitality & Sumptuary out of the Budget Estimates 2021-22.