Goa govt opts for austerity measures ahead of next budget

Ahead of drafting of the new budget, Goa government has banned all foreign tours and asked departments to take up austerity measures in order to inject more fiscal responsibility in the state economy.
In directions issued this week, which can have pan-department ramifications, the State Finance Ministry has asked all its departments to cut short its non-plan expenditure by 20 per cent by end of current financial year.
The order issued by Secretary, Finance P Krishnamurthy has also banned foreign tours till June 2015.
This ban will also cover the tourism junkets, which had received criticism off late.
However, already approved tours have been exempted from the order.

The departments have also been told not to exceed their monthly expenditure limit beyond 15 percent for next two months.

The Laxmikant Parsekar-led state government has also imposed restrictions on organising state funded workshops, seminars and events.
Also departments have been asked to reduce their electricity and water bills and use of fuel for cars by at least 15 per cent.
Krishnamurthy said the directions are to ensure economic measures and rationalisation of expenditures in order to achieve the targets set in the Goa Fiscal Responsibility and Budget Management Act, 2006.
It has been brought to the notice of the government that departments have the tendency of indulging in bulk purchases at the fag end of the financial year, in order to incur expenditure of unspent budgetary provisions allotted for the financial year, the order said.

Most of the time, these provisions exceed requirements which lead to wasteful expenditure by the departments, it added.
Till March end, government has put ban on purchase of office infrastructures like furniture, computers, printers, telephones, office vehicles or any other items.