The official order to provide for a cut of up to 20 per cent in non-Plan expenditure (Rs 24,000 crore) was issued by the Finance Department after being approved by Chief Minister Narayan Rane.

Finance and Planning Minister Mahadeo Shivankar emphasised that the cut in no way indicated a fragile financial state of affairs.

``We have imposed a cut on the non-Plan expenditure, but it does not mean that our financial condition is weak,'' he told The Indian Express. ``Financially, we are very strong, in fact better than last year.''

The reduction, he added, was with a view to bringing about financial discipline in the state's affairs.

Shivankar said a drive to curb ``uncalled for expenditure'' was part of his budget speech and was intended to restore the state's financial health.

``My exercise is in the same direction. Against the normalpractice of imposing a cut in October or November, I am imposing it in June so that more funds will be available for reallocation.''

The minister said the emphasis would be on curbing the travel expenses of senior officials, electricity charges, telephone bills and allowances paid to government employees and rent for buildings and premises used to house government offices.

``I have asked officials of the Finance and Planning departments to ensure that uncalled for expenses are stopped in the interests of the state,'' he added.

A senior official also pointed out that nearly Rs 200 crore was paid last year to field officials visiting Mumbai. The officials, he said, flew down to the state capital despite the fact that the matter was not urgent.

Field staff had since been asked to rein in air travel expenses, he said. ``Instructions have been given to the field staff... that they should not travel by air without the written permission of the secretary of the concerned department.''

In addition, theFinance department will maintain a strict vigil on the Government Transport Service (GTS) responsible for providing vehicles to top officials and Cabinet members. ``We will save a huge amount if the GTS functions effectively,'' the official added.

The alliance government has launched a drive to mobilise Rs 1500 crore from arrears of sales tax and stamp duty.

``From the amnesty scheme for sales tax defaulters, we should collect at least Rs 800 crore out of the arrears of Rs 3000 crore. The remaining amount will come from stamp duty and the Maharshtra State Electricity Board (MSEB),'' the official said.