Kerala to slash expenditure in next budget, directs depts to reset spending

Representational image
Representational image. File Photo.

Thiruvananthapuram: The Kerala government has initiated drastic austerity measures to reduce expenditure in the next budget in the wake of the Centre slashing the state’s borrowing limits and the severe economic crisis that it is grappling with.

The Finance Secretary has directed each department that the non-plan revenue budget, excluding salaries, should not exceed that of the current financial year and that the uneconomical schemes should be dropped.

They should not take up new projects, other than those unavoidable like the repairing works.If a scheme is discontinued, the concerned department should hand over a list, informing the government about the number of persons employed under it.

The affected persons should be redeployed to other departments or posted against current vacancies, the Finance secretary directed.

The departments should submit their non-plan expenditure estimates by August 31, plan expenditure estimates by September 10, and the estimates on revenue and other receipts by September 15 this year.

Other directions

1. No new public works other than those given the green signal by the government should be included in the budget proposals.

2. Expenditure should be cut wherever possible.

3. The departments should clearly explain to the government the need to continue each of the projects, programmess, and public works.

4. The government should be informed of the amount and outstanding dues that one department charges from the others.

5. The salary expenses for each project should be highlighted in the budget estimates, and no increase will be allowed later.

6.If any additional expenditure is incurred in the next budget, compared to the current one, the reasons for the same should be shown.



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