Govt announces several austerity measures for fiscal prudence

Govt announces several austerity measures for fiscal prudence

No creation of new post; those vacant for 2 yrs to be surrendered

10% cut for POL, travel, publicity, hospitality, camps etc

Mohinder Verma
JAMMU, Jan 15: Government of Union Territory of Jammu and Kashmir today announced several austerity measures in order to rationalize the expenditure for fiscal prudence during the current financial year. Moreover, there will be no creation of new post and those lying vacant for more than two years will be surrendered and even 10% economy cut has been imposed on budget allocation for LTC, POL, travel, advertisement, conduct of camps and conferences and travel expenses.
In the guidelines/measures for austerity and rationalization of expenditure issued by Principal Secretary to the Government, Finance Department Santosh D Vaidya, it has been stressed that during the last quarter of the current financial year the revenue expenditure should be limited to 30% of revised budget allocation and in the month of March, the expenditure should be limited to 15% of such allocation.
In the last month of the current financial year, payments may be made only for the works duly executed and the goods and services already procured. “Hence, no amount should be released in advance in the last month with the exception of the loans or advances to Government servants as per service conditions or on compassionate grounds or to disaster victims as a measure of relief and rehabilitation”, the Principal Secretary Finance said.
“Rush of expenditure on procurement of goods and services should be avoided during the last month of the current financial year to ensure that codal procedures are complied with and there is no infructuous expenditure”, the guidelines said while disclosing that 10% economy cut has been imposed on the budget allocation for OE, LTC, telephone, POL, travel, advertisements, publicity, hospitality and sumptuary activities.
No new post will be created during the current financial year and the posts that have remained vacant for more than two years would be identified for surrender. Such posts will not be revived except under rare and unavoidable circumstances and after seeking clearance from the Finance Department. However, the filling of regular posts will be undertaken only through J&K Services Selection Board and J&K Public Service Commission routes and with the concurrence of the Finance Department.
Stating that travel expenditure should be regulated so as to ensure that each department remains within the revised allocated budget, the Finance Department has made it clear that re-appropriation/ augmentation proposals on this account will not be entertained. “International travel shall not be allowed without specific permission is granted by the Finance Department and within the country, the officers should travel only by economy class regardless of entitlement”, guidelines said.
Disclosing that 10% economy cut has been imposed on travel expenses budget allocation for 2023-24, the Finance Department has suggested that facility of video conferencing may be used effectively and travel for the purpose of attending meetings should be avoided to the extent possible. Moreover, utmost economy should be observed in organizing conferences, seminars and workshops and holding of exhibitions outside J&K should be strongly discouraged, the guidelines said, adding “there shall be complete ban on holding of meetings and conferences at private hotels and Government buildings should be utilized for this purpose as 10% cut has also been imposed on the budget allocation for such activities”.
The departments have also been told to strictly discourage purchase of vehicles and that exceptional cases tor meeting critical operational requirement shall be permitted with 20% reduction against condemnation as a replacement measure and with the concurrence of Finance Department. The already condemned vehicles must be auctioned and auction proceeds deposited as Miscellaneous Revenue before submitting such proposal, the Finance Department said.
The department has made it clear that no furniture shall be procured except in case of newly established offices with the concurrence of the Finance Department and the old dilapidated furniture should be auctioned and auction proceeds deposited as Miscellaneous Revenue.
As far as holding of official functions is concerned, the guidelines said that there shall be complete ban on holding of official dinners and lunches, except those hosted by the Chief Secretary and Lieutenant Governor or with specific approval of the Lieutenant Governor.
The local fund available with various departments, universities, authorities and agencies will be subject to these austerity measures and the compliances of GFRS, CVC guidelines and instructions issued by Government for e-tendering, GEM based procurement, technical sanction and administrative approval should be strictly followed.
The Administrative Secretaries will be responsible for ensuring compliance of these measures and Director Finance(s) and Financial Advisor(s) will scrupulously assist the respective departments in securing compliance with these measures and also submit an overall report to the Finance Department.