On the heels of unrelenting fiscal pressures, Kerala’s Finance Department has issued a directive to all government departments to exercise extreme caution while preparing Budget Estimates for the upcoming financial year. This move underscores the state’s persisting fiscal strain, which has shown minimal signs of improvement despite the change in government. In Thiruvananthapuram, the circular issued as part of the budget preparation process explicitly instructs departments to refrain from increasing expenditure and to ensure that revised estimates do not exceed the original budget estimates.
Departments have been advised to avoid projects that lack tangible economic benefits and to postpone repair and maintenance works that can be deferred. Furthermore, they have been asked to prepare realistic salary estimates and provide justification for any expenditure that surpasses the previous year’s level. The directive also suggests that surplus employees be redeployed to fill emerging vacancies rather than being retrenched. Non-plan expenditure, excluding salaries, should not exceed last year’s figures, and department heads have been tasked with critically evaluating all schemes before including them in the budget.
The circular also calls for a review of the need to retain temporary employees and seeks details of pending tax and non-tax arrears. Despite a rise in revenue receipts to Rs 33,311.21 crore during the first quarter of the current financial year, expenditure and borrowings have increased, keeping the Treasury under pressure. The financial squeeze is already being felt by local bodies, with Thiruvananthapuram Corporation Mayor V.V. Rajesh meeting Chief Minister V.D. Satheesan to discuss the civic body’s difficult financial position.
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📰 Source: Mangalorean News