Fund crunch: HP govt mulls austerity measures
SHIMLA : In view of the tight economic situation in the state, the Himachal Pradesh government is mulling a slew austerity measures to cut down on wasteful spending which is costing heavy on the government exchequer. The government is likely to slash spending on foreign jaunts and cutting down expenses on government ceremonies.
The government led by Jai Ram Thakur is aiming at curbing non-planned spending and generating more income as the debt burden on the state, exceeding ₹48,000 crore, is weighing heavy.
The government is also mulling on banning the purchase of luxury cars for the next at least five months, while some ministers and top bureaucrats have already suggested on adding more luxury cars to the government fleet.
“The previous government has also spent crores of rupees on purchasing vehicles for ministers, chairmen, vice-chairmen of various boards and corporations. This time, mechanisms are also being developed to check the misuse of vehicles,” a government official said.
The previous government had announced some dues to the employees besides regularising contract employees in shorter period.
Under the 14th finance commission, the state got a revenue deficit grant of ₹40, 625 crore and three instalments of around ₹24,000 crore have been received by the state. Now only ₹16,000 crore is expected in the next two years, that too if the centre is convinced that the previous grant was used to contain the revenue deficit.
JAI RAM ASKS FOR TAX RELIEF TO INDUSTRIES
The Himachal government has urged the central government to provide 100% tax exemption to industries in the state for the first five years.
In order to facilitate industry, the government has also sought 50% exemption for the next five years besides making a provision of interest subvention of 7% for a period of seven years.