Manipur government imposes budgetary ceilings for the third time, cuts down expenses

The Finance department stated that the COVID-19 pandemic has seriously impacted the resource availability of the state government and the transfers from the central government and receipts from state's own resources are likely to see a sizable reduction.


Representational Image (Photo: Pixabay)

The Finance department, government of Manipur on Friday implemented budgetary ceilings, for the third time, to control the state expenditure for fiscal 2021-2022 citing COVID-19 pandemic.

An office memorandum issued by the Finance department stated that the COVID-19 pandemic has seriously impacted the resource availability of the state government and the transfers from the central government and receipts from state's own resources are likely to see a sizable reduction.

Against this backdrop, it explained 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 state government, including unavoidable expenditure on COVID-19-related activities.

As a result, it has become necessary to cut down on expenditure to ensure that scarce resources are made available for meeting critical and committed expenditure of the state, the department stated.

The memorandum stated that ceilings of expenditure will be fixed under the Object Head Codes across all Budgetary Heads of all demand numbers as 11- Domestic Travel Expenses (40 per cent); 12- Foreign Travel Expenses (20 per cent); 13- Office Expenses (40 per cent); 21- Supplies and Materials (50 per cent); 25- Clothing and Tentage (50 per cent); 27- Minor Works (40 per cent); 35- Grants for creation of capital assets (50 per cent); 36- Grants-in-aid of Non-salary (50 per cent); 50- Other Charges (50 per cent); 51- Motor Vehicle (50 per cent); 52- Machinery and equipment (40 per cent) and 53- Major Works (60 per cent).

It also stated that the above object head-wise ceilings will not apply to CSS/ CPS/ EAP/ NEC/ NLCPR/ NESIDS funds, NABARD loan and other grants from the Centre which are authorized as per actual receipts, as well as funds specifically earmarked for State Matching Shares, all 'Charged' expenditure, repayment of principal and interest of loans availed by the state government, Security Related Expenditure (SRE), COVID-19 related expenditure, expenditure under 'Demand No. 1- State Legislature' (excluding Foreign Travel) and 'Demand No. 11- Medical, Health and Family Welfare Services' and other expenditure deemed necessary by the competent authority.

The memorandum further mentioned that the administrative secretary and head of the department will be responsible for ensuring compliance of the measures outlined above. Drawing and Disbursing Officer (DDO) and Finance Officers posted in the departments should also ensure that aforementioned ceilings are strictly adhered to whenever any proposals are referred to the Finance department.

Treasury and sub-treasury officers shall also check that the bills forwarded by departments for encashment are not in contravention of the restrictions outlined above, it added.

Earlier on September 25, 2020, the state government had cut down expenditure of 14 categories and another 12 categories on October 24, 2020.

 

(The Imphal Free Press is now on Telegram. Join IFP News Update Group and stay updated with the latest news and impact stories)

 

First Published:July 9, 2021, 11:30 p.m.

Leave a comment