Maharashtra government to cut 67% of expense, will save Rs 70,000 crore

Prafulla Marpakwar | TNN | May 5, 2020, 06:27 IST

MUMBAI: The cash-strapped state government on Monday imposed a 67% cut on planned expenditure to mobilize nearly Rs 70,000 crore to tackle unexpected expenditure following the outbreak of coronavirus. The total planned expenditure is around Rs 1.11 lakh crore. TOIfirst reported this in its edition datd April 26.
“We did take austerity measures, but were unable to garner adequate funds. We then decided to impose a 67% cut. It will not be applicable to state’s contribution in centrally sponsored schemes, salaries and pension,’’ a senior bureaucrat told TOI. “We expect to mobilize Rs 70,000 crore while about another Rs 10,000 crore will come from deferment of dearness allowance to state employees.”
In a four-page order, chief secretary Ajoy Mehta declared public health, medical education, relief & rehabilitation and food & drug administration as ‘priority’ departments. “Only these have liberty to spend while all proposals given other departments have been shelved...,’’ the bureaucrat said.
All department heads have to review ongoing schemes to see if they can be cancelled or postponed. “No new schemes must be proposed, schemes approved by the state cabinet must be put on hold...,” he said.
If a scheme is being undertaken following directives by the judiciary, it should be brought to the court’s notice that, owing to critical financial situation, it will not be possible to implement the scheme.
Besides getting photocopiers, computers, furniture repair is disallowed, the bureaucrat said, adding that no proposal can be made for seminars or other events.