The State government has gone on a resource mopping overdrive and regulated treasury payments to meet the committed expenditure comprising salary, service and welfare pensions to the tune of ₹5,500 crore in December.
The steep fall in tax collection due to the Goods and Services Taxes (GST) rate revision, closing down of check-posts and the Central laxity in delegating authority to the State as per the GST Council decision to delegate authority to crack down on tax evaders had virtually left the State government in the lurch. It had a tough time managing the liquidity crunch. The salary and service pension bills alone touch ₹3,000 crore and welfare pensions to various sections, ₹1,500 crore.
The concerted efforts made to streamline the Plan process, by expediting project preparation and clearances right from the beginning of the financial year too, have yielded remarkable results and the Plan expenditure has already touched 50%. It is bound to rise further in the last quarter and surpass the fund absorption rates registered during the previous years.
The intervention to streamline the planning process was hailed as a commendable move, but the rise in expenditure has added to the strain on the exchequer. Deviating from the convention of making mandatory transfers in the beginning of every month, the Centre has now pushed it to the middle of the month, upsetting the fiscal management plans of the State government. The State is in no position to avail itself of a loan immediately too.
Officials sources said in this context the government resorted to an overdrive to tap all available sources to garner resources and regulate treasury payments to meet the committed expenditure. A decision was made to defer some payments, stagger the release of major sums and local bodies were directed to act in a prudent manner so that the funds collected from the treasury are not parked in their accounts and submit bills only on a priority basis.
Due care has been taken to clear the payments due to individual beneficiaries, mainly the marginalised sections. The crisis is expected to blow over by January, but the Union government delay in notifying the GST Council decision to give teeth to the State to galvanise tax collection, if not addressed soon, may again protract the crisis.EOM/NJN
