THIRUVANANTHAPURAM: The state government has capped treasury payments in the wake of fund shortage. The finance department’s directive to treasuries director said the ways and means limit has been reduced from `1 crore to Rs 25 lakh with immediate effect.
This means payments above Rs 25 lakh require prior sanction from the department. It is learnt fund shortage is due to Centre’s delay in issuing borrowing consent to states.
The new cap may extend up to May-end. Also, bills above Rs 25 lakh submitted via the Ways and Means Management System will be directed to the Ways and Means wing of finance department for clearance.