Cut your coat according to your cloth – a familiar proverb needs to be redrawn as ‘cut your coat and spare some cloth’ since the effects of corona-virus pandemic has created such conditions . Though the instructions of cutting on expenditures are for the Government run departments and institutions , the same hold true of every one in one way or the other. There being no let up in the cases suffering from the dreaded infection and considerable extra funds needed to fight it in a scenario when revenues due to the Government are realised far from satisfactory, slight restrictions on expenditure shall continue till the end of the third quarter of the year ending Sept 2020.
An order issued by the Finance Department has desired that all departments to restrict overall expenditure within 40 percent of budgeted estimates of 2020-21. It has , however, exempted certain areas from the restrictions which comprise payment of wages, stipend, scholarships, compensation and beneficiary oriented schemes. Public utility oriented schemes initiated by Public Works (R&B), Rural Development, Power Development and Jal Shakti Departments are exempted from the restrictions. Non salary heads of Revenue Budget are restricted up to 20 percent for the same quarter.
Since the challenge of corona virus pandemic is mounting on continuous basis, more and more resources are needed to be mopped up to fight it and provide healthcare facilities, the extent of which is not showing any downsizing. Therefore, the need was to tighten the belt further and restrict expenditures. Along with a severe danger to peoples’ health, the pandemic has brought with it devastating effects on the economy, commerce and employment globally. In that context, the restrictions needed to be analysed.
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