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regular-article-logo Monday, 23 December 2024

Covid second wave prompts govt to reintroduce austerity drive

The finance department issued a blanket ban on expenditures for office renovation, decoration and furnishing

Our Special Correspondent Calcutta Published 02.07.21, 02:23 AM
Representational image.

Representational image. Shutterstock

The Mamata Banerjee government has reintroduced its austerity drive in the backdrop of the second wave of Covid-19.

In an order issued on Wednesday, the finance department barred purchase of vehicles, computers, IT-related accessories, furniture, ACs, water coolers, TVs and office equipment till December 31.

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The department also issued a blanket ban on expenditures for office renovation, decoration and furnishing. It has also prevented the departments from hiring additional cars.

Sources said the measures had first been taken in April last year when the pandemic had hit the country. It continued till June this year.

“But we have to continue with the measures as our revenue generation is yet to reach the pre-Covid period when we used to collect Rs 5,500 crore a month. Furthermore, the Centre has not cleared dues of nearly Rs 50,000 crore under different heads till the date,” said an official.

The sources also said the burden on the state exchequer had increased after the chief minister had enhanced the financial assistance under Krishak Bandhu Scheme to Rs 10,000 from Rs 6,000 annually.

“An additional sum of Rs 11,000 crore would be spent for the scheme annually. So, we have to cut down our expenditures under some heads,” said a source.

Another official said the state government was spending about Rs 450 crore a month to provide treatment to Covid patients.

“The Centre has neither sent any assistance nor provided medicines or other requirements to the states steadily. So, Bengal is facing an acute financial crunch,” said another official.

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