Odisha partially relaxes expenditure rationalization measures
BHUBANESWAR: The Odisha government on Tuesday partially allowed partial relaxations in expenditure rationalization measures, which were adopted in July, in view of economic downturn due to the global pandemic Covid19.
Informing it in a letter to all departments, state finance secretary AK Meena said after initial shortfall in resources in the early part of the financial year due to shutdown/lockdown, the resources are now looking up due to partial recovery in the state economy.
“Some innovation in mobilization of resources and consistent monitoring has provided the state government with some fiscal space to enhance capital investment for revival of the economy and generation of livelihoods for the people,” said Meena.
While the state government had imposed a complete ban, in its July order, on sanction and drawl of new long-term advances like house building advance, motor car advance, computer advance and other advances by its employees, it has now allowed drawl of new long-term advances.
As part of the austerity measures, the state government had also ordered to avoid new tender for execution of works, procurement of goods and services. Now, the state government allowed new tenders for execution of works for on-going schemes and procurement of goods and services keeping in mind the budget provision. New tenders can be floated without reference to the finance department.
Similarly, capping on expenditure out of the provision ‘operation and maintenance expenditure’ has been relaxed from 60 per cent to 75 per cent of the budget provision. Further relaxation shall be considered on availability of resources in the month of January, said the finance secretary.
While imposing a complete ban on purchase of new equipment (except medical equipment and equipment required for internal security), the state government had in July allowed only procurement of equipment for promoting digital communication with concurrence of the finance department.
“Equipment required for promoting digital communication can be procured within the delegated financial power without reference to finance department,” said Meena.
Similarly, departments can now also spent upto 75 per cent of the fund earmarked under “other contingencies” on purchase of office furniture and for the purpose of fixtures and furnishing.
Stating that the expenditure rationalization measures were adopted to ensure that new priorities like Covid response, agriculture sector and livelihoods are well funded, the finance secretary said the government has been successful in minimizing the impact of the pandemic on the state economy as well as realization of resources.