Govt ups spending limit of depts, says focus on priority areas

CHANDIGARH : The Punjab government has allowed a higher expenditure limit to its departments in the first half (April to September) of the financial year 2023-24 as compared to the same period of the previous year while telling them to spend on priority areas having “social and economic multiplier effect” and reduce wasteful expenses. The state government, which presented the ₹1.96 lakh-crore budget on March 10, has decided to stagger the expenditure over the year, allowing the departments to spend up to 50% of their budgetary allocation in the first six months of this financial year and the balance in the remaining period, two officials aware of the development said. In the financial year 2022-23, the departments were asked to spend not more than 45% of their annual budget in the first half and the remaining 55% in the next six months. “The departments have been asked to plan their spending accordingly. The idea is to accelerate the pace of development works from the first quarter itself and move towards frontloading of expenditure,” said one of them, on condition of anonymity, pointing out the tendency of the government departments to make a slow start and incur a bulk of their expenditure in the last two quarters.

Excess expenditure to entail disciplinary action

The finance department, which sent detailed guidelines on the management of state finances recently to all administrative secretaries and heads of departments, has asked them to ensure that the expenditure is incurred within the budgetary allocations approved in the budget estimates (BE) for the current fiscal and take specific clearance in case of any additional fund requirement. Any expenditure incurred in excess of the budgetary allocation provided in 2023-24 BE without the explicit prior approval of the finance department will entail not only strict disciplinary action against the authority sanctioning such expenditure but also the sum mary rejection of any proposa for revision of the budget according to the instructions.

More autonomy granted to departments

The departments have also been allowed more autonomy to plan their expenditure within th approved budget, thereb improving the efficiency of thei spending. “There is a lot of dele gation and they need not com to the finance department fo clearance. This will reduc unnecessary administrative has sles. The administrative secretar will be the competent authorit to issue sanctions as per the bud getary allocations,” the officia quoted above said. The depart ments will, however, require th FD’s prior approval before incur ring expenditure on foreign travel, engaging new profession als or service providers, and pur chasing staff cars. The financ department has also instructed all senior officers to meet thei tax and non-tax revenue targets warning that the department which fails to achieve the target without “reasonable justifica tion”, may face a reduction in it budgetary allocation. The stat government, in the 2023-24 BE projected growth of 17% in ta revenue and 29% in its own non tax revenue.

THE STATE GOVERNMENT HAS ALLOWED THE DEPARTMENTS TO SPEND UP TO 50% OF THEIR BUDGETARY ALLOCATION IN THE FIRST SIX MONTHS