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Government tightens purse strings; issues fresh fund release norms

Last Updated 03 June 2020, 17:20 IST

Gripped by recession, Karnataka is tightening the screws on expenditure and has issued stringent guidelines for release of government funds.

Ceasing the practice by some departments in releasing both state and the Centre’s share for centrally-sponsored schemes, and mandatory implementation of Human Resource Management System (HRMS) to draw salaries in all government institutions are among the directions issued by the state. The order further delegated financial powers to all department heads for the next six months.

The order also listed more than 200 schemes and projects for which the departments concerned will have to seek prior concurrence from the Finance Department for funds. Some of the schemes in the list included free bus travel facility to the physically challenged, concessional bus travel facility to senior citizens, Jaladhare - rural water supply scheme, construction of residential schools, implementation of Karnataka Tourism Vision Group recommendations, several housing schemes and others.

The Central government is planning to reduce the allocations under centrally-sponsored schemes owing to financial constraints. Therefore, the departments should communicate with their respective Union ministries and prepare revised action plans for implementation of various schemes, the order said.

Finance Department took objections to the practice by few departments to releasing Centre’s share of funds for some schemes. “Finance Department has noticed that some administrative departments have been releasing both Centre and state’s share of funds while awaiting the release of funds by the Centre. The practice should be compulsorily stopped. If such cases are repeated, the release of funds for the scheme will be stopped and financial powers delegated to the department will be withdrawn,” the order said.

Despite directions for all departments and corporations to use HRMS for transparency in payment of salaries, several corporations were yet to adopt the system. Now, the Finance Department has set a final deadline of June 30. In a circular issued September 27, 2019, the Department had set an April 1, 2020, deadline for all government bodies to adapt the HRMS.

The order on May 30, delegated financial powers for a period of six months from June to November. While such orders were issued every quarter, Covid-19 pandemic had forced the government to issue separate orders for the months of April and May to regulate expenditure during the lockdown

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(Published 03 June 2020, 16:45 IST)

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