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More control: Kerala tightens spending

Order wants new posts, grant of subsidy get sanction from Cabinet.

THIRUVANANTHAPURAM: On April 17, the finance department had put out a list of economy measures that sounded more like a request than an order; it wanted new posts to be created only after a 'work study' and limited the purchase of new vehicles to department heads. Now, after quickly coming to the realization that the controls are a bit tame, the department has given the economy measures more teeth. A new order wants post creation, hiring of temporary staff, grant of subsidy and even purchase of vehicles to get the sanction of the Cabinet. Even if a department head has the financial powers, any decision involving extra outgo, even the need to get a new vehicle, should mandatorily get the go-ahead from the Cabinet.

"It has come to our notice that proposals involving post creation, hiring of temporary staff, grant of subsidy and hiring of vehicles are being invariably cleared by the departmental working groups in complete violation of the spirit of the economy measures initiated by the government," a top finance department official said. "The clearing of such proposals without taking into account the financial implications will adversely affect the finances of the state," the official added.

The latest order, therefore, states that even proposals needing the approval of just the departmental working group should first reach the special working group. The government order specifically states that proposals like post creation and subsidy should not be considered by the departmental working groups even if such proposals are within the powers of the department heads.

The departmental working group normally can sit on proposals involving an outflow of up to Rs one crore, the administrative departmental working group can dispose of proposals with a commitment of up to Rs 10 crore. The special working group, the highest sanctioning body convened by the Finance principal secretary, deals with commitments of only over Rs 10 crore. "Now even a minor proposal, like the purchase of a car that was taken up at the lowest level, will have to come to the SWG," the official said. It is not just enough to get the SWG nod either, the concerned departments should also get the proposal green-lighted by the Cabinet.

( Source : Deccan Chronicle. )
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