Govt restricts fund use, bans depts from creating new posts | Goa News

Panaji: Ahead of the presentation of supplementary demands in Feb, the state finance department on Tuesday put restrictions on the utilisation of funds with immediate effect. Govt also banned its departments from creating new posts with immediate effect.
In an office memorandum issued by the finance department, it was stated that govt has, from time to time, issued various instructions on economy measures, rationalisation of expenditure, etc, in order to achieve the targets and standards set out in the Goa Fiscal Responsibility and Budget Management Act, 2006. This is also to provide adequate funds for developmental activities under the capital account and to restrict/manage expenditure on the revenue account.
Under-secretary, finance, Pranab Bhat said for the current financial year 2024-25, every department shall effect a 25% cut in budgetary revenue expenditure, excluding interest payments, repayment of debt, and payment of salaries and pensions.
For the current financial year 2024-25, not more than 20% of the budgetary estimates shall be spent in the remaining quarters of this financial year, except under flagship schemes of govt. Wherever possible, this may be reduced by 40% until the financial year end. This limit is to be enforced both scheme-wise as well as demands for grants as a whole, subject to additional provisions in the revised estimates, if any.
“There shall be a ban on the creation and upgradation of posts in all departments/autonomous bodies/corporations of govt until further orders,” Bhat said. In order to curb unnecessary expenditure, a ban on purchases has been put in place.
“The director of accounts is directed not to entertain any bills of purchases made after the date of issue of this memorandum. Even if the departments resort to such purchases during this period and thereafter submit the bills in the following financial year, the same should not be entertained,” Bhat said.