Bouncing cheques ring in alarm for cash-starved UP government

It has taken some steps to cut unproductive expenditure which is unlikelyto ease the situation. The government has banned fresh appointments and abolished vacant posts. It has withdrawn telephone facility provided toofficers drawing salaries below Rs 12,000-16000 scales. It has also withdrawn STD facilities at the residences of Lucknow-based officers except those of secretaries and heads of departments. Foreign tours, dinners and lunches in five-star hotels by officials at the government’s expenses and purchase of new vehicles have also been banned. But these steps are unlikely to bail out the state government.

The chief minister had recently promised to get the 5th pay commission pay-scales to teachers which would cost the state exchequer Rs 1600 crore. He had also announced many concessions to traders which would certainly reduce the receipt.

Against the tax recovery target of Rs 11,481 crore during 2000-2001, so faronly Rs 6,500 crore has been collected. It has requested the Reserve Bank ofIndia not only to raise the overdraft limit from Rs 736.18 crore to Rs 1000 crore but also to increase its period to 15 days.

The state government has pinned hopes on the 11th Finance Commissionrecommendations. After the 10th finance commission recommendations, it hadgot Rs 36158.91 crore. Now it expects Rs 78,509.30 crore. It also expects arise in small savings from Rs 4,300 crore to Rs 4,799.31 crore.

Receipts have registered an increase, from Rs 1,600 to Rs 2,390 crore permonth, but expenditure too has gone up from Rs 2,000 crore to Rs 2,900crore per month. The deficit in the current year till October 2000 was Rs 4,813.01 crore. It is likely to reach Rs 5,884.16 crore by the end of thecurrent financial year against Rs 7,253 crore in 1999-2000.