Thiruvananthapuram
With Kerala’s finances continuing to remain under strain, the Finance Department has directed all government departments to strictly rein in expenditure while preparing Budget Estimates for the next financial year, underscoring that the State’s fiscal position has shown little sign of improvement despite a change in government.
In a circular issued as part of the Budget preparation process, departments have been instructed not to increase expenditure and ensure that revised estimates do not exceed the original budget estimates.
Projects with no tangible economic benefit are to be avoided, while repair and maintenance works that can be deferred should be postponed. Departments have also been asked to prepare realistic salary estimates and justify any expenditure that exceeds the previous year’s level. Surplus employees need not be retrenched but may be redeployed to fill emerging vacancies.
Non-plan expenditure, excluding salaries, should not be higher than last year’s, while department heads have been asked to critically evaluate all schemes before including them in the Budget.
The circular further calls for a review of the need to retain temporary employees and seeks details of pending tax and non-tax arrears, the reasons for such dues, and the steps taken to recover them.
The move comes even as the State’s revenue receipts during the first quarter of the current financial year rose to Rs 33,311.21 crore over the corresponding period last year.
However, expenditure and borrowings have also increased, keeping the Treasury under pressure. The financial squeeze is already being felt by local bodies. Speaking to IANS, Thiruvananthapuram Corporation Mayor V.V. Rajesh said he had met Chief Minister V.D. Satheesan on Monday and explained the difficult financial position facing the civic body.