New cash management order issued for flow of funds

State government’s revenue collection declines after coronavirus outbreak and lockdown

LUCKNOW: Admitting a decline in revenue collection following the Covid-19 lockdown, the state government on Saturday ordered its departments not to issue any financial sanctions for large ‘construction works’ and ‘buying land’ without prior approval of the finance department till June 30.

Citing ‘special circumstances’ after the lockdown as the reason, the government has issued the new ‘cash management’ order to ensure unhindered flow of funds for the fight against the coronavirus.

“Under prevailing circumstances, the financial sanctions for grants concerning all departments under ’24-vrahat nirman karya (large construction works)’ and ‘grant number 60-Bhumi Kraya (buying land)’ heads will be released only with the consent of the finance department,” said additional chief secretary (ACS), Finance, Sanjiv Mittal in the order number 5/202/B-1-196/Das-2020231/2020 dated April 11, 2020.

The order was sent to all the additional chief secretaries, principal secretaries and secretaries here on Saturday.

“The state government’s revenue has come down following the lockdown ordered in the state in view of the World Health Organisation’s (WHO) move declaring Covid-19 a pandemic.

In order to keep the resources available to carry out necessary works to check the spread of the coronavirus, the state government has taken (these) important decisions,” reads the new cash management order that comes into effect immediately.

Administrative departments usually have the authority to issue financial sanctions for funds allocated to them in the state’s annual budget for development projects etc.

The state government, in an office memorandum issued on March 24, 2020, and a government order issued on April 7, 2020, had also reiterated that administrative departments were vested with powers to issue financial sanctions under these major heads.

The state government, however, has made it clear that payment for works of medical and health services, medical education, Ayush department, police and revenue departments, along with payment of salaries to government employees, teachers and nonteaching staff, will be made regularly.

“All committed expenditure allowances, honorarium and pension etc. of government employees, teachers and nonteaching employees of the Basic Education Board and aided education institutions whose salaries are paid by government grants, will be made regularly. Payment of honorarium/wages of Home Guards, Pradeshik Raksha Dal and aanganwadi workers and Asha Bahu will also be made regularly,” says the new order.

It further reads the ‘payment of arrears of any kind’ will be made after June 30.

It has asked the departments to regularly clear dues like electricity bills, house tax and water tax to urban local bodies and said the financial sanctions for centrally sponsored schemes should, however, be made after prior approval of the state finance department.