With no let up in pandemic, Govt extends expenditure curbs till Sept

Relaxations given to some Deptts
Excelsior Correspondent
JAMMU, July 10: With no let up in COVID-19 pandemic as cases continued to surge across Jammu and Kashmir, the Union Territory Government today ordered that restrictions imposed on expenditure will continue for second quarter of the financial year as well i.e. from July 1 to September 30, 2020.
An order to this effect was issued today by Financial Commissioner, Finance Department Dr Arun Kumar Mehta.
However, there will be no restrictions in expenditure in some of the cases including wages, stipend, scholarships, compensation and beneficiary oriented schemes.
The Finance department has directed the Departments to restrict overall expenditure within 40 percent of budget estimates 2020-21 up to ending September with some exceptions.
“Expenditure under Capex Budget (Capital Expenditure) in respect of ongoing works and non-construction activities will be restricted up to 40 percent of budgetary estimates of 2020-21 by ending September except in the case of Public Works (R&B), Rural Development, Power Development and Jal Shakti Departments,” a Circular issued today by the Finance Department said.
However, the Government order said, these four Departments can incur expenditure up to 50 percent of budgetary estimates 2020-21 by ending September 2020.
These Departments have also been permitted to initiate works within full budget approved for the financial year of 2020-21, as per the Government order.
However, the expenditure on all non-salary heads of Revenue Budget will be restricted up to 20 percent of budgetary estimates 2020-21 for second quarters of the financial year (July to September) with overall expenditure up to 40 percent of budget estimates 2020-21 by ending September this year.
However, there will be no restrictions in respect of some items of expenditure within overall authorization of funds conveyed to the Department.
As per the Finance Department’s order, there will be no restrictions on wages, honorarium, stipend, scholarship, compensation and beneficiary oriented schemes of Social Welfare Department and other Departments.
There will also be no restrictions on leave encashment claims of current financial year of 2020-21 up to ending June 2020, medical reimbursement claims and telephone charges of the current financial year.
More items which have been exempted from restrictions of expenditure include RRT/electricity charges for 2020-21, diet, drugs and instruments, M&E/M&S in respect of Health and Medical Education Department, feed, fodder and drugs for Animal/Sheep Husbandry and Fisheries Department, procurement of food grains for Food, Civil Supplies and Consumer Affairs Department and Disaster Response Fund related expenditure.
It may be mentioned here that following outbreak of Coronavirus pandemic, the Jammu and Kashmir Government had imposed certain restrictions on expenditure by the Government Departments on April 29 this year for first quarters of the financial year i.e. from April 1 to June 30. With expiry of the first quarter of financial year, the Government has extended restrictions for second quarter of the financial year as well.
Sources said the restrictions will be further reviewed in September.

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