Mumbai, Sept 16: The cash-starved Sena-BJP government today imposed a 15 per cent cut on the non-planned expenditure to garner Rs 306 crore immediately required for on-going developmental schemes. Interestingly, on the same day, State’s Chief Minister Manohar Joshi got a plan outlay of Rs 11,600 cr approved by the Planning Commission. In his meeting with Singh, Joshi called for special assistance for development of Mumbai and said the Centre should allocate at least Rs 1000 cr each year to deal with problems of the mega-city.
An official resolution issued by the State’s Finance Department states that following the cut, provisions made for conveyance allowance, establishment expenditure, petrol and diesel, publications, advertisements, hospitality, arms and ammunition, inspection work, motor vehicles, major construction works and stationery will be reduced.
The total provision for items was Rs 2042.18 crore and by imposing a 15 per cent cut, the government proposes to save Rs 306 crore.
However, seniorofficials of the Finance as well as Planning Department have reacted with skepticism, saying, the resolution will not serve any purpose and will have only cosmetic impact.
The officials felt that the implementation of the order should begin from the Cabinet members themselves and then percolate to the bottom rungs of the administration.
“If the government is really interested in curbing expenditure, it should immediately halt the tours of senior ministers and top bureaucrats. A cursory glance at the list of ministers likely to visit foreign countries is enough to tell that there is virtually a race among the Cabinet members for a foreign jaunts,” the official pointed out.
And as a case in the point, right now Deputy Chief Minister Gopinath Munde is leading a high level delegation to USA to participate in the World Energy Conference. He is accompanied by Chief Secretary P Subramanian, Energy Secretary Satish Tripathi, Maharashtra State Electricity Board Chairman Ashok Basak and Munde’s Secretary SanjayKumar.
While the expenses of Munde, Subramanian, Tripathi and Sanjay Kumar will be borne by the State Government, Maharashtra State Electricity Board will bear the expenses of Ashok Basak. “At a time when we are managing our day-today business on borrowed money, is it essential for the government to sponsor such a high-level delegation,” the official wondered. Moreover, he said, both the Cabinet ministers and bureaucrats very well know that such visits do not serve any purpose.
Munde’s will be followed by another high-level delegation to invite foreign investors to participate in the Agro-Advantage Convention being organised by the alliance government on November 5, 6 and 7. “We feel that government should adopt a practical approach towards organising such conventions. Last year, we spent a huge amount to organise the Advantage Maharashtra convention, which was inaugurated by the then Prime Minister H D Deve Gowda, to attract foreign investors. Even after a year, we do not have specific information onthe outcome of the convention. While we offered projects worth Rs 10,000 crore, we do not know how many entrepreneurs have actually invested in the projects,” the official bemoaned.
The solution then is to impose a similar, or bigger cut on the planned expenditure to tackle unprecedented financial crisis
As an austerity measure, the government has already banned creation of new posts, recruitment, purchase of new vehicles, restrictions on air travel, and curbs on use of telephones.