Cash crunch -- Panel tells State to trim its expenses

Cash crunch -- Panel tells State to trim its expenses
SHAILESH GAIKWAD

Mumbai, Jan 12: Alarmed by the deteriorating financial health of the state’s economy, the State Planning Board has advised the Democratic Front Government to reduce the expenditure on the administration by 10 to 11 per cent.

‘‘We have asked the Government to trim the cost on administration to 50 per cent of the total budget from the current 60.29 per cent,’’a top official of the board said here today.

Actually, the expenditure on administration should not exceed 40 per cent. However, it has increased up to an all-time high of 60.29 per cent following the implementation of the fifth pay commission in the state. It should be brought down to 50 per cent by the end of the next fiscal year, the board has told the Government.

The expenditure on administration, mostly on the payments to the Government employees, has soared during the recent years making it difficult for the Government to provide more funds for developmental activities.

The board has stressed the needs for drastic cut in the payments and monetary benefits being made to the government employees. Its executive chairman Ratnakar Mahajan had placed the recommendation before the cabinet at its special meeting two days ago.

‘‘We also suggested the Government to stop the encashment of casual leave along with the encashment of general leave but it was not accepted,’’the official pointed out.

The board has sought a check on the borrowings of funds by the Government and its corporations from the market. It has suggested that the total amount of the borrowed funds should not exceed Rs 4.5 crore.

Meanwhile, the first meeting of the reconstituted board was held at Mantralaya today. The meeting was chaired by Chief Minister Vilasrao Deshmukh who is also ex-officio chairman of the board.

Addressing the board members, Deshmukh said that the board should shoulder the responsibility of raising funds from the districts for local developmental works. He justified the austerity measures adopted by the cabinet saying that the decision was necessary to put the state’s derailed economy back on track.

Talking on the occasion, Mahajan lamented that the role of the Planning Board had reduced to a department keeping a watch on expenditures. ‘‘With the changes in the global economy, the planning department should entrust the board with the job of utilising the resources and manpower to the best of the state’s interest,’’he said.

He also stressed the need for amendments in certain laws which had become obsolete with the changing times.

Downsize cabinet, advocates BJP

The state unit of the Bharatiya Janata Party has demanded the downsizing of the state Cabinet and bureaucracy along with a white paper on the expenditure incurred by the ministers since they took charge. Criticising the austere measures announced by chief minister Vilasrao Deshmukh, BJP state unit spokesman Atul Bhatkalkar referring to their demand said, ‘‘Charity begins at home.’’ The Democratic Front government has a record 58 ministers including the chief minister and the deputy chief minister. This is the largest Cabinet since the formation of the state.

At a press conference in the party’s South Mumbai office on Friday, Bhatkalkar spelt out a cost cutting formula prepared by his party. Mooting the integration and restructuring of various ministeries on the lines of the late Prime Minister Rajiv Gandhi, Bhatkalkar said, ‘‘Cutting down the number of ministers is certainly a feasible option to reduce a major chunk of government expenditure. Other than incurring extra overheads the performance of the ministers is deplorable.’’ The BJP’s cost cutting demands also include the use of domestic airlines by the chief minister and his deputy. ‘‘Why should they need the government plane. When you talk of trimming, implement it within the government first. The government plane can be rented out and the state exchequer can benefit from it,’’ he said.

In a press statement later in the day, the leader of opposition in the Legislative Council, Nitin Gadkari, castigated the government for "its short sighted approach pertaining to the welfare of the people".

‘‘The Shiv Sena-BJP government respected the dignity of the old and the infirm of this state. During our tenure we gave them a monthly dole of Rs 750. This government has reduced it to Rs 335 per month. They have reduced the old age homes under the Matoshree Vrudhashram Yojana to 16 from the 30 built by the alliance government. In short this government has not only lost the faith of the people but has proved that it is unfit to rule,’’ lashed out Gadkari.