PANAJI: Chief minister Pramod Sawant may have announced the withdrawal of expenditure restrictions on procurement and infrastructure projects, but the state government continues to regulate spending on purchases and development works valued at over Rs 2 crore.
On November 19, Sawant announced that the austerity measures imposed on June 10, would be lifted so that recruitment and infrastructure works could resume.
Just days later, on November 26, the finance department issued a circular to all departments and said that prior permission is required for all expenses worth more than Rs 2 crore.
The government’s rationale behind the circular is that it will ensure “efficient utilisation” of limited funds and help the form a “qualitative appraisal” of the projects.
“For better qualitative appraisal of the projects and efficient utilization of state resources, the government has decided that all proposals costing Rs 2 crore and above towards procurement of goods and services and infrastructure works shall require prior approval of this department before carrying out tender formalities,” said under secretary for finance expenditure, Premraj Shirodkar.
Proposals that require expenditure sanction below Rs 2 crore will also have to be referred to the finance (expenditure) department, but only after sufficient budget provision is made, administrative approval obtained and the tender process is completed.
Earlier, departments had to obtain approvals for expenditure proposals from the expenditure finance committee and the Goa state works boards. This process, said Shirodkar, will continue, but additional approval from the finance (expenditure) department will have to be sought.
The chief minister recently announced that the state’s financial situation has improved and that revenue collections will touch 70% of pre-Covid levels. GST collections for Goa continue to see sluggish improvement, with the state facing a 12% shortfall in November even though the national average showed GST collections in the positive territory.
The state has resorted to borrowing Rs 100 crore on a weekly basis, a departure from previous financial years where the state would sell state development bonds on a fortnightly basis.