Financial discipline

Sir,
A welcome step this, the State Government has, for the first time in the history of Jammu and Kashmir, started penalizing the departments in not being in a position to meet allocated expenditure targets by slicing the budgetary allocation of four departments which failed to achieve the targets. Well, this step aims at dealing with two issues simultaneously, that of enforcing financial discipline and second prepare base or the ground of fixing accountability. The current era worldwide, revolves around the maxim of incessant improvement in performance in every field,  with the approach of professionalism, application of  minimal inputs and reaping maximum returns and not being found wanting in taking timely decisions, a unique type of mindset which needs to be given an adieu for good. In the instant case, 70 percent of funds of the Budgetary allocation , meant to be expended on various works, have remained idle as on Dec 31, 2017. The four departments on whom the ire of facing Budgetary cuts have  fallen  are – Power, R&B, Urban Development and Irrigation and Flood Control. Taking a serious note of not meeting expenditure targets, symbolic cuts in the Budget have been imposed on them. This step, undoubtedly, shall prove as a deterrent to other Government departments that from now onwards the guidelines of adhering to financial discipline cannot be afforded to be taken lightly.
The guidelines, inter alia, state that only 30 percent expenditure can be incurred during last quarter of the financial year, ie, January to March while 70 percent funds had to be used during first three quarters from April to December. This has been done to avoid last quarter panic expenditure rush especially in March as had been the case earlier. That had the inherent drawbacks, leading in many cases to commissioning of certain irregularities and indulging in misappropriations and defalcations. It may be noted that the expenditure reforms were now part of the Appropriation Bill which had been passed by both the houses of the legislature and hence had legal sanctity. The Government departments, therefore, have been left with no option but to observe the guidelines mentioned in the Appropriation Bill failing which they could run the risk of facing cuts in the budgetary allocations. The next step could be to view the lapse under reference, as symptoms of willful non performance by the concerned officials of the respective departments.
Yours etc…
S Kumar
Jammu

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