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news details
Amid COVID crises, JK Govt goes for major budgetary curtailment for FY 20-21
Deptts asked to restrict overall expenditure within 40% of Budget, non salary heads to spend no more than 20 %
7/11/2020 12:53:17 AM
Peerzada Ummer

Early Times Report

Jammu, July 10: The Jammu and Kashmir government in order to curtail the expenses within the dispensation has come out with a detailed order, asking department heads not to spend more than 20 percent of the allocated budget on non- salary heads and restrict overall expenditure within 40% of Budget.
“The guidelines vis-a-vis expenditure restrictions imposed vide circular issued under endorsement No. FD-VII- dated: 29-04-2020 shall remain in force during the second quarter, 0 2 (July-September, 2020) of the current financial year 2020-21 as well. The Departments are required to restrict the overall expenditure within 40% of Budget Estimates 2020-21 upto ending September, 2020,” reads the circular issued by the finance department here on July 9.
The circular has stated that the expenditure on all non-salary heads of Revenue Budget shall be restricted upto 20% of the Budget Estimates, 2020-21 for Q2 (July to September, 2020) with overall expenditure upto 40 % of BE 2020-21 by endingSeptember, 2020.
However, the government didn’t put any restriction on wages/Honorarium/Stipend/Scholarship/Compensation and Beneficiary oriented schemes of social welfare and other departments. Also there has been no cap on Leave encashment claims of current financial year 2020-21 upto ending June 2020.
An official of the finance department divulged that the measure has been taken in order to minimise the expenditure this year and not to allow any liabilities during the government spending.
As per the government order, the expenditure under Capex Budget in respect of 'on-going' works and 'non-construction' activities shall be restricted upto 40 % of BE 2020-21 by ending September, 2020 except in case of PW (R&B), Rural Development, Power Development and Jal Shakti Departments. These four Departments can incur expenditure upto 50% of BE 2020-21 by ending September, 2020 and are also permitted t o initiate works within full budget approved for the financial year 2020-21.
Meanwhile, medical reimbursement claims for the financial year too have been exempted from the curtailment schedule by the government.
Earlier in April, the government issued an order of freezing the Dearness Allowance (DA) to the government employees and Dearness Relief (DR) to government pensioners at current rates till July 2021.
Several employees unions had stated that freezing DA of poor Govt servants appeared to be unfair as they will wait for DA till July 2021, facing the brunt of price hike of all the essential commodities. They advocate that many Government employees under trying circumstances at this crucial juncture are working round the clock and that denying them DA will be great injustice to them. The employees unions had termed the measure as discouraging for the employees and workers. They had urged the government to review its decision for the welfare of the working class in the country and J&K UT.
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