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TS to turn austere
The Telangana government, which is in the process of preparing budget proposals for 2016-17, is likely to adopt severe `austerity’ measures in all departments by drastically cutting down non-plan expenditure.
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Govt to go in for severe austerity measures to trim non-plan expenditure
Hyderabad: The Telangana government, which is in the process of preparing budget proposals for 2016-17, is likely to adopt severe `austerity’ measures in all departments by drastically cutting down non-plan expenditure.
The proposed measures include downsizing of outsourcing staff, curb on excessive use of government vehicles and reducing assistance to the corporations and make them self-reliant.
About 70 per cent of the non-plan budget is earmarked for salaries and allowances of the government employees and payment of interest payments and pensions . Remaining 30 per cent of funds are used as miscellaneous like maintenance of offices, government vehicles and social services.
The officials of the State Finance Department said that government was working on these lines since it had prioritised the two bedroom housing scheme, Mission Kakatiya , irrigation projects and Water Grid as the flagship programmes of the government for which huge funds are required. All these projects will be put on fast track mode from next financial year. Besides, the other welfare schemes like Re-one-per-kg Rice scheme, sanna biyaam(Fine rice) and social pension schemes also have to be implemented.
The sources said that revenue from tax collections has not increased as expected by the government this year. In the present circumstances the same trend is likely to continue during 2016-17. The reduction in the central assistance to the centrally sponsored schemes has also hit the schemes taken up under planned budget. Taking into account all the hurdles seriously, the government decided to cut down the non plan expenditure and allocate more funds to the planned budget. In 2014-15 budget , TS government had allocated Rs 63,306 crore under non plan and Rs 53,383 crore for planned budget.
This time the allocations will be increased by at least 20 per cent under plan budget and there would be a reduction of about 20 per cent in non plan budget as compared to last year.
All the departments have also been asked to submit a month-wise income and expenditure along with the budget 2016-17 proposals to reduce unnecessary expenditure.
By:Patan Afzal Babu
