Boost for Chandigarh as Centre lifts 20% spending curb

CHANDIGARH: In a major relief to the UT administration, the ministry of finance of the central government has lifted the cut of 20% in the budget.
The restriction was imposed for two quarters — April to June and July to September — due to the coronavirus pandemic.

“We received an official letter from the ministry last week. All the UT departments will be issued a letter in a day or two, allowing them to spend the money in required areas after removing the ceiling. Calculations and other related process will be initiated by the finance department, keeping priority areas as far as expenditure is concerned in mind,” a senior official said.
The Centre had released a financial grant of Rs 5,186.12 crore for the financial year of 2021-2022 to the UT. A single quarter’s amount came to Rs 1,296 crore. By not allowing to spend 20% of the amount, the UT faced a setback of around Rs 260 crore in each quarter. Earlier, the main focus of the expenditure was only on wages, salaries and committed liabilities. As a result, developmental works had come to a halt.
“Committed liabilities like salaries, wages, bills and unavoidable expenses were priority areas earlier. Developmental works had been affected. Now, we are hopeful stalled works will gain pace and by the end of this financial year, some ongoing projects or planned works will see progress,” sources said.