Thiruvananthapuram: The state government has decided belt-tightening measures including restrictions on creation of new posts and purchasing luxury vehicles besides replacing schemes which are not mandatory with post flood related reconstruction projects.
The devastating floods have caused widespread damage in various sectors. The post flood rebuilding and reconstruction activities involve an additional burden of Rs 30,000 crore on the state exchequer. As the additional financial burden has come up after the passing of annual budget and approval of annual plan outlay, the challenge before the finance department is humongous.
Finance minister T M Thoms Isaac said the schemes which are not mandatory would be replaced with new projects linked with the post flood rebuilding exercise. Barring agri schemes, all other projects will be tweaked to link them with flood related reconstruction programme.
The minister said the officials have been directed to rework the projects accordingly.
The process related to the finalisation of new schemes would be completed within two weeks and fresh administration sanctions would be accorded for the same.
Dr Isaac said the GST income which had been badly affected by the floods would come to around 14 per cent with the Central compensation. But the 20 to 25 per cent growth that the state was expecting this time would not beome a reality.
Meanwhile, the government clarified that the belt tightening measures would not affect education and helath care services.
Hoewver,the austerity measures which were announced by finance minister Thomas Isaac would ontinue.
New posts will be created only after carrying out the required work study. There will be strong curbs in place for creation of new posts from now on.
