The Finance department has impressed upon government departments the need for keeping economy in mind while preparing estimates for the 2023-24 budget.
It said the ''serious financial constraints'' faced by the State government call for ''extreme austerity'' in the budgeting exercise.
As a general rule, Finance department wants the non-Plan revenue budget, excluding salaries, to be retained at the level of the current financial year. This would entail economy measures in ‘‘all other spheres of activity”, and may require uneconomical schemes to be dropped and certain other measures, such as maintenance expenses, to be put off, it noted in a July 29 communique to department heads.
Departments were also directed to submit their non-Plan expenditure estimates by August 31, plan expenditure estimates by September 10, and estimates on revenue and other receipts by September 15 this year.
Expenditure estimates should be prepared realistically so that the amounts proposed for programmes or schemes did not turn out to be excessive or inadequate later on, the communique said. The Finance department also wanted heads of departments and controlling officers to critically look at the programmes, schemes, and works, and file review reports along with their budget estimates.
In its latest audit report on State finances, the Comptroller and Auditor General had urged the State government to be more realistic in its budgeting exercise. The CAG had observed discrepancies such as failure to execute schemes, misclassifying expenditures, lack of transparency, and excess and unnecessary re-appropriation of funds.
Discontinuation of the Goods and Services Tax compensation beyond June 2022, reduction in fiscal deficit grant, and other factors could lead to shortfalls in the years ahead, according to the State government. This could entail a shortfall of about ₹23,000 crore in the current fiscal alone, Finance Minister K.N. Balagopal had warned.
