In view of the financial crisis triggered by COVID-19 pandemic, Haryana Government has directed its bureaucrats to keep the need to economize in mind while preparing the budget estimates for next financial year 2022-23.
Kick-starting the 2022-23 budget preparations, the State Government has asked the Heads of Departments that the scheme-wise budget proposals for 2022-23 should be realistic keeping in view the tentative minimum requirement of the Department.
In a communique to all the Heads of Departments, Divisional Commissioners, Deputy Commissioners and Registrar General, Punjab and Haryana High Court, the state’s Finance Department has issued a series of directions to keep a tight rein on expenditure in the next budget.
The Chief Minister Manohar Lal Khattar, who holds the portfolio of the Finance Department will present his third budget in March 2022.
Mentioning the financial crisis due to COVID-19, the Finance Department has asked the Departments to provide the information on schemes, projects or activities on which there is substantial increase in expenditure and the expenditure on development activities which have been deferred for next year due to COVID-19.
“The state is facing an unprecedented crisis on account of COVID-19 pandemic. In the wake of the Corona pandemic and its far-reaching effects, the State Government is functioning under stress as the economy of Haryana faced setback on account of the lockdown induced stagnation. Resultantly, the expenditure of a number of Departments has increased during 2021-22, while on the other hand, development activities of Departments have been deferred for next year,” the communique stated.
Pointing out the non-adherence to the instructions related to purchase of motor vehicles during the year, the Finance Department has asked the Departments to make specific budget provisions under object head “motor vehicles” if they intend to purchase any new vehicle or replace old vehicles during 2022-23 otherwise no proposal for the purchase of vehicles will be entertained by the Finance Department. They have also been instructed to mention the number of vehicles (petrol/diesel driven) in existence and number of vehicles likely to be condemned or replaced during 2022-23.
The communique also pointed out that the payments to the persons working on contract basis, daily wages and even those providing professional services in the government is being drawn by many Departments from the salary object head which is against the rules. The details regarding salaries, DA, medical allowances etc have also been sought alongwith the budget estimates to enable the Finance Department to assess the normal increase on account of annual increment and also on account of specific activities leading to increase in contingencies.
The communique further stated, “All expenditure on account of accommodation, transport/DA etc of Ministers/officers on travel abroad should be sanctioned and drawn distinctly under the object head ‘foreign travel allowance’.”
Among other instructions issued to the Departments included opening of new schemes in consultation with the office of Accountant General Haryana through Finance Department, diversion of funds to another object head should be a rarity in future, focus on PPP model, restructuring of existing schemes, clubbing of schemes with similar objectives and identifying most appropriate goals and targets.
Notably, the state’s finances depicts a dismal scenario with Haryana’s debt liability projected at Rs 2,29,976 crore as on March 2022 from Rs 1,99,823 crore as on March 2021, constituting 25.92 per cent of the GSDP.
Amid the COVID-19 crisis, the State Government had presented a Rs 1.55 lakh crore budget for 2021-22 fiscal, with health, agriculture and infrastructure as focus areas.
