Maharashtra government issues directives to meet expenses, raise revenues

MUMBAI: Economy has been badly hit by the Covid 19 lockdown imposed throughout the country. As a fallout, the Government of Maharashtra has announced a slew of measures to raise government revenues and meet unavoidable expenditures like salaries of employees. To this end, the state government, on Monday, May 4, 2020, issued a government resolution (GR). According to it, various departments have been directed by the government to not introduce any new schemes for the current fiscal year. Moreover, the state government will also not be spending on any scheme that it had announced/undertaken from the start of the fiscal year 2020-21.

The government has designated Public Health, Medical Education, Food and Civil Supplies and Relief & Rehabilitation as priority departments. All other departments are being barred from issuing new purchase orders or tenders, the GR said.

Transfers of officials and recruitment of new staff has been suspended for all departments and they have been asked to return all unspent money from their bank accounts to the state treasury before May 31, 2020. The GR also stated that the state’s current financial condition is likely to continue for the next two to three months as the government faces a challenge of reviving the economy.