Mumbai, Feb 14 Amid rising fiscal deficit and public debt, the Maharashtra government has introduced an austerity drive directing 30 per cent cut in expenditure by all departments.
The government has also directed a 20 per cent cut in expenses incurred on the use of fuel in government vehicles. The government has released a notification on late Thursday night.
According to the government notification, as the work of preparing the revised budget is underway, the departments have been asked to spend 70 per cent of the original budget provisions keeping in mind the availability of funds for the necessary expenditure.
"Proposals for distribution of funds for prize distribution, foreign travels, publications, computer expenses, advertising, constructions, contractual services, subsidiary grants, and motor vehicles will have to be sent to the Finance Department by the concerned departments by February 18 after ensuring how much money was spent. The Finance Department has clarified that unspent funds cannot be kept in the bank accounts of regional offices, boards and corporations," reads the government notification.
The government has allowed 95 per cent of the expenditure for the payment of salaries, water, electricity, and telephone - 80 per cent, contractual services - 90 per cent, office expenses - 80 per cent and professional services – 80 per cent. The government has excluded various schemes from the austerity plan. These schemes consist of fund distribution for the District Annual Plan, MLA Local Development Fund, and Central and State share in Union government-sponsored schemes. In addition, the government has allowed 100 per cent fund distribution for scholarships, stipends, loans, interest, inter-account transfers and pension-related expenses.
The government sources said that till February 12 it has disbursed Rs 6.18 lakh crore out of the budget provisions of Rs 8.23 lakh crore but the actual expenditure has been Rs 3.86 lakh crore which is 46.89 per cent of the total budget provisions.
"Therefore, instructions have been given to all departments to limit expenditure during the remaining period of the financial year. Therefore, the Finance Department is trying to limit the fiscal deficit. In 2024-25, the government has estimated expenditure excluding debt repayment of Rs 6,12,293 crore, an increase of 2% over the revised estimates of 2023-24. In addition, debt of Rs 57,198 crore will be repaid by the state. Further, it has projected receipts excluding borrowings worth Rs 5,01,938 crore, an increase of 3% as compared to the revised estimate of 2023-24," the sources added.
The sources further said that the fiscal deficit is likely to be reduced only if there is a cut in expenditure. The government's move to announce austerity measures comes when it is striving to mobilise funds for a slew of welfare and development schemes worth Rs 1 lakh crore including much debated Ladki Bahin Yojana and free electricity to farmers launched ahead by the assembly elections. The fiscal deficit has almost crossed Rs 2.30 lakh crore while the public debt is around Rs 8 lakh crore.
The government’s move comes when it has excluded over 5 lakh women beneficiaries from Ladki Bahin Yojana as they have become ineligible. The government has earmarked a whopping Rs 46,000 crore for Ladki Bahin Yojana, free electricity to farmers Rs 14,761 crore, free education to girls Rs 1,800 crore, MukhyaMantri Youth Training Rs 5,500 crore, Annapurna Yojana Rs 1,300 crore, Lek Ladki Yojana Rs 1,000 crore, Senior Citizens scheme Rs 480 crore and godown scheme Rs 341 crore.
Further, the government has resorted to an austerity drive ahead of the presentation of the budget for 2025-26 by Deputy Chief Minister and Finance Minister Ajit Pawar during the session, starting from March 3.
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