PANAJI: With the state’s finances improving, the government has withdrawn the circular that mandated expenditure approval for procurement and infrastructure projects valued at over Rs 2 crore.
The circular had been issued on November 26 in order to ensure “efficient utilisation” of limited funds and help the government form a “qualitative appraisal” of the projects on which taxpayers’ money was being utilised.
“The government is pleased to withdraw the circular with immediate effect. This is issued with the approval of the finance minister,” said under-secretary for finance expenditure Premraj Shirodkar.
12% GST shortfall in November
The government has issued a new circular to this effect.
On November 19, chief minister Pramod Sawant had announced that the austerity measures imposed on June 10 would be lifted so that recruitment and infrastructure works could resume. However, on November 26, the finance department had asked all departments to obtain prior permission from the finance (expenditure) department before incurring expenditure of over Rs 2 crore.
The November 26 circular had said that proposals below Rs 2 crore would 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.
Along with an improvement in economic activity, the Centre has also disbursed Rs 429 crore to Goa as compensation for the shortfall in GST collections. GST collections for Goa continue to remain sluggish with the state facing a 12% shortfall in November even though the national average showed GST collections in the positive territory.