The State government has directed the heads of departments and other estimating officers to review the existing expenditure “very critically” in preparing the budget estimates for the next financial year so that those expenditure which do not serve any tangible purpose substantially could be dropped, phased out or reduced.
The departments concerned are exhorted to explore new base for improving their receipts and curb leakages from the bottom level to top by ensuring strict vigilance. Steps should also be taken to improve the performance of employees by fixing required personal performance indicators at each level. The government has intensified efforts for preparation of the budget estimates for the financial year 2020-21 and revised estimates of the current financial year.
It had directed the heads of departments and estimating officials concerned to submit the estimates online to the administrative departments of the Secretariat before January 7. The administrative departments would in turn forward these estimates after scrutiny to the Finance Department by January 9.
Clear instructions
Recalling experiences where budget proposals were being sent late in spite of clear instructions, the government directed the departments to strictly adhere to the dates prescribed. If the estimates are received after January 10, the Finance Department would not be able to intimate any changes made in the estimates as there would not be sufficient time for considering representations relating to changes made by the departments.
In a series of do’s and don’ts for the departments, the government said experience had shown that many departments were furnishing their estimates in a routine manner without examining the need for the continuation of the scheme and justifications for the provisions claimed by them. Expenditure management policies and strategies should normally ensure that every rupee budgeted was well spent in such a way that it would capture efficiency in expenditure, provides incentives to rationalise expenditure and was driven by need rather than by the spirit of incremental increase in allocation year on year.
Finance Dept. order
“The total expenditure irrespective of revenue or capital must generate value for the public,” the order issued by the Finance Department said.
The officials concerned are accordingly directed to furnish proposals for the RE 2019-20 and BE 2020-21 in respect of revenue and loan receipts with which they are concerned giving full details of targets fixed as per performance indicators for each department. In the case of new schemes introduced during the year, the dates of introduction and the estimated expenditure for the current year should be mentioned in the remarks column.
They should furnish calculation sheet consisting of rate of contract, period of contract, number of persons engaged on contract/ outsourcing and the total amount required towards payment of remuneration. Estimating Officers are requested to furnish brief and clear explanations for the Revised Estimates and Budget Estimates for coming year under Receipts and Expenditure. They are informed that in the absence of explanations, any increase of expenditure is liable to be summarily rejected.
