Chhattisgarh govt cuts back on expenditures after steep fall in revenue due to lockdown

Chhattisgarh government has decided to take multiple austerity measures while ensuring optimal utilisation of resources available for development-oriented work. The move comes after a steep fall in the state's revenues due to the nationwide lockdown.

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Spending cuts announced by Baghel's administration

An official release by the Chhattisgarh government read, "As per the decisions, creating new posts, transfer, organising meetings inexpensive hotels, foreign tours and purchase of new vehicles has been prohibited and instructions have been given to take economic measures for recruitment on vacancies, promotion and annual salary increment." 

"As per the instructions issued by state government's Finance Department in the context, recruitment on any and all vacancies, except vacancies of direct recruitment and appointment on compassionate grounds, can be done only after taking permission from the Finance Department. For posts that were earlier approved by the Finance Department but recruitment on these posts was pending, the concerned department will have to take permission again before recruiting on these posts," the notification further added.

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As per reports, the Central government owes as much as Rs 3 trillion to states in the form of income tax returns, value-added tax, and goods and services tax (GST), etc. Chhattisgarh government has asked for the dues to be paid in order to take up expenditure needed, especially in its fight against the pandemic.

"We are periodically talking about it. GST dues are very clearly explained in the GST Council. It is not for selective states... All states' GST dues which we recognise for December, January, February, March have not been paid," Finance Minister Nirmala Sitharaman told reporters on May 17.

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The state government's release further stated, "Payment of arrears as a result of promotion-up-gradation will remain pending till the next orders of the Finance Department."

"As per the transfer policy issued by General Administration Department, transfer of officials and employees has been prohibited. Keeping in view the additional expenses caused due to transfer of employees, departments are expected to keep the transfers to the minimum possible. If urgently required, transfer on one's own expenses should be given preference," the release said.

Foreign tours, first-class travel in flights and trains, purchase of new vehicles, and annual salary increment salary for the period from July 1, 2020, and January 1, 2020, has been postponed until further notice. However, this order will not be applicable to government employees retiring before January 1, 2021, and July 1, 2021.

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