BHUBANESWAR: With the COVID-19 pandemic inflicting a massive contraction in economy, the Odisha government on Tuesday imposed a ban on new schemes and projects while capping expenditure on state schemes for the current fiscal.
Drawing up a detailed austerity plan, the Government barred all administrative departments – except Health and Family Welfare Department - from taking up new schemes. Only those meant for emergent public service would be allowed following an appraisal from Expenditure Finance Committee or Standing Finance Committee with concurrence of the Finance Department.
Similarly, there will be a capping of expenditure on continuing State Scheme for the current financial year. However, schemes related to livelihoods in Agriculture and allied sectors and expenditure for COVID-19 will be exempted. In case of Centrally Sponsored Schemes, expenditures would be incurred after Central share is received.
"Nation-wide lockdown and shutdown has interrupted economic activities which resulted in shortfall in realization of resources. On the other hand, COVID management would require higher expenditure. There would be higher spending need for generating employment and livelihood for the most affected sections of
the society," Principal Secretary, Finance Department Ashok Meena said in the circular.
The Government put a complete ban on overseas travel, purchase of new vehicles for next two years and said even reimbursement for staying in hotels in all the four metros except respective Government Bhawans or Niwas accommodation are not available will not be entertained.
Similarly, creation of new posts except for Health and Family Welfare Department has been prohibited. Any emergency position for modernization of administration and programme implementation will be considered against abolition of equivalent posts but with a nod from Finance Department.
"There shall be automatic abolition of redundant posts lying vacant for more than five years. New engagement of consultants, outsourcing and engagement of retired employees shall be restricted," the circular said.
The government said that new tenders for execution of works, procurement of goods and services will be avoided. For emergent public service, tender exceeding a value of Rs 5 crore and goods and services procurement above Rs 25 lakh will require permission.
Tenders already floated will be reviewed and if found not urgent in nature, cancelled. All tenders for new office buildings, guest houses and residential buildings will stand cancelled till March 2022. However, projects under Rural Infrastructure Development Fund and externally aided projects will continue though those with long gestation will be deferred.
Sources said that the state fovernment has already initiated an exercise to take a fresh look at the bouquet of 60-odd welfare schemes and freebies in view of the pandemic. A rejig of the budget may be required to put this into effect, sources added.