Extending expenditure curbs

28/07/2020

With no let-up in COVID-19 pandemic as cases continued to surge across Jammu and Kashmir, the Union Territory Government has now ordered that restrictions imposed on expenditure will continue for second quarter of the financial year as well i.e. from July 1 to September 30, 2020. However, there will be no restrictions in expenditure in some of the cases including wages, stipend, scholarships, compensation & beneficiary oriented schemes. Expen-diture under Capex Budget (Capital Expenditure) in respect of ongoing works and non-construction activities will be restricted up to 40 percent of budgetary estimates of 2020-21 by ending September except in the case of Public Works (R&B), Rural Development, Power Development and Jal Shakti Departments," a Circular issued by the Finance Department said. However, the Government order said, these four Departments can incur expenditure up to 50 percent of budgetary estimates 2020-21 by ending September 2020. These Departments have also been permitted to initiate works within full budget approved for the financial year of 2020-21, as per the Government order.
The expenditure on all non-salary heads of Revenue Budget will be restricted up to 20 percent of budgetary estimates 2020-21 for second quarters of the financial year (July to September) with overall expenditure up to 40 percent of budget estimates 2020-21 by ending September this year. However, there will be no restrictions in respect of some items of expenditure within overall authorization of funds conveyed to the Department. As per the Finance Department's order, there will be no restrictions on wages, honorarium, stipend, scholarship, compensation and beneficiary oriented schemes of Social Welfare Department and other Departments. There will also be no restrictions on leave encashment claims of current financial year of 2020-21 up to ending June 2020, medical reimbursement claims and telephone charges of the current financial year. Following outbreak of Coronavirus pandemic, the Jammu and Kashmir Government had imposed certain restrictions on expenditure by the Government Departments on April 29 this year for first quarters of the financial year i.e. from April 1 to June 30. With expiry of the first quarter of financial year, the Government has extended restrictions for second quarter of the financial year as well.

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