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Citing Covid impact, Manipur sets budgetary ceilings to control expenditure

The finance department has imposed additional restrictions in ceilings in certain expenditure head-of-accounts of all departments, where expenditure is likely to be limited due to the COVID-19 pandemic.

Written by Jimmy Leivon | Imphal | October 22, 2020 9:47:04 pm
manipur govt, manipur govt cabinet, manipur cabinet, manipur govt formation, n biren singh, bjp npp, npp, manipur news, indian expressManipur CM Biren Singh.(File)

The Manipur finance department has implemented budgetary ceilings in a bid to control state expenses. The economy measures came barely a month after the government had cut down expenses on non-essential expenditure on September 25.

Dr Rajesh Kumar, Chief Secretary of the state in an office memorandum issued on Thursday said that the move was to ensure that scarce resources are made available for meeting critical and committed expenditure of the state.

“The COVID-19 pandemic has seriously impacted the resource availability of the state government. The transfers from Government of India and receipts from State’ Own resources are likely to see a sizeable reduction vis-à-vis the previous financial years”, he said.

Kumar further pointed out that the amount to be incurred on meeting recurring expenditure is likely to see an increase during the current fiscal due to certain commitments made by the Government, including unavoidable expenditure on COVID-19 related activities.

The office memorandum stated that ceilings of expenditure will be fixed under the Object Head Codes across all Budgetary Heads of all demand numbers for the fiscal year 2020-2021.

The state has set 40 percent ceilings in Foreign Travel Expenses, 60 percent in Office Expenses, 40 in Publications, 50 in Supplies and Materials, 40 percent in Clothing and Tentage, 50 percent in Advertising and Publicity, 40 percent in Minor Works, 50 percent Grants for creation of capital assets, 50 percent in Grants-in-aid (Non -salary), 40 in Other Charges, 50 in Motor Vehicle, 40 percent in Machinery and equipment and 50 percent in Major Works.

However, it stated that the above object head-wise ceilings shall not apply to centrally sponsor schemes, NABARD loan and other grants from the centre which are authorised as per actual receipts, as well as funds specifically earmarked for State Marching Shares among others.

Above this, the finance department has also imposed additional restrictions in ceilings in certain expenditure head-of-accounts of all departments, where expenditure is likely to be limited due to the COVID-19 pandemic.

Modified Budgetary Provisions, after the above ceilings have been imposed, will be circulated to all departments, it said.

On September 25 the finance department had put a cap on as many as 14 categories of non-essential expenditure as an austerity measure with COVID-19 pandemic impacted the state’s economy. Prior to this, the state had put on hold all on-going recruitment processes except those already started with the approval of the cabinet.

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