Kerala: Finance puts breaks on year-end splurge

THIRUVANANTHAPURAM: With the State government in the mood for election-eve largesse, the finance department has no choice but to conserve as much funds as possible in the Treasury. While the Cabinet plays to the gallery, the department has cracked the whip.

It has decided not to allow departments to indulge in the traditional ‘end of the fiscal’ illusory splurge to show 85-90 percent plan fund utilisation on paper. The flip side is, certain ongoing projects like in agriculture and animal husbandry will stand frozen.

As a fiscal enters it last days, it is usual for government departments to draw huge amounts as cash and demand drafts to avoid lapse of allocated amounts. Such withdrawals are made in respect of incomplete works and purchases in violation of the rules pertaining to financial propriety, to be observed by each and every drawing and disbursing officer.

What's more, this money is not drawn for any actual expenditure, but only to be kept idle in a separate bank account causing huge and unnecessary outgo from the Consolidated Fund of the state.

But this time, funds will be disbursed only for actual expenditure and all claims will have to be backed by purchase bills, expenditure statements and other documents.

For instance, the Electrical Inspectorate has claimed expenditure for Rs 4.82 crore. But they have supporting documents for only Rs 82 lakh. The Department will not be allowed to take out the remaining Rs 4 crore. This way, the outgo from the Treasury will be dramatically curtailed.

All heads of departments and drawing and disbursing officers have to present bills, cheques, and challans to the treasuries latest by 2 p.m. on March 27. "If any urgent claim is to be made after this date, transactions in this regard should be completed before 10 p.m. on March 30. In such cases, reason for delay, or urgency, should be stated in the request for clearance," additional chief secretary K. M. Abraham said.