Thiruvananthapuram: Amid the financial crisis in the state, the state government has enhanced the limit of funds that can be spent by the local bodies on inaugural functions attended by ministers.
As per the latest order issued by the local self-government department, the fund limit has been enhanced from Rs 25,000 to Rs 75,000, that can be utilized from the own funds of the local body concerned. The order says that a maximum of Rs 75,000 can be spent for all those functions that are conducted in open places or auditoriums attended by the ministers. For the functions conducted in other places other than these two places, the maximum fund that can be spent on arrangements will be Rs 50,000. Earlier, the limit for this category was Rs 10,000.
For any other function, the fund limit has been set as a maximum of Rs 25,000, as per the latest order. The order also says that these can be spent with the clearance of the respective local body council. The latest revision has been made on the limits set in 2015, that was then fixed on the basis of the recommendations of a state-level committee on decentralisation.
Interestingly, the revision comes at a time when the government has fixed a cap in the treasury on ways and means limits, which clearly shows the financial stress that the state government is in. The ways and means limit that was up to Rs 1 crore till last month, has been reduced to Rs 25 lakh, in the wake of fund shortage in the state exchequer.
In yet another major extravagant expenditure during the financial crisis, last month, the government had given clearance to spend Rs 35.16 crore for conducting exhibition-cum-sales fest across the state in connection with the first anniversary of the second LDF government under Pinarayi Vijayan. The government has been stressing on the need to maintain financial discipline in every aspect to tide over the acute financial crisis triggered by Covid-19.
Finance department had even instructed all administrative departments to recommend schemes and proposals by keeping austerity measures in mind.
As per the latest order issued by the local self-government department, the fund limit has been enhanced from Rs 25,000 to Rs 75,000, that can be utilized from the own funds of the local body concerned. The order says that a maximum of Rs 75,000 can be spent for all those functions that are conducted in open places or auditoriums attended by the ministers. For the functions conducted in other places other than these two places, the maximum fund that can be spent on arrangements will be Rs 50,000. Earlier, the limit for this category was Rs 10,000.
For any other function, the fund limit has been set as a maximum of Rs 25,000, as per the latest order. The order also says that these can be spent with the clearance of the respective local body council. The latest revision has been made on the limits set in 2015, that was then fixed on the basis of the recommendations of a state-level committee on decentralisation.
Interestingly, the revision comes at a time when the government has fixed a cap in the treasury on ways and means limits, which clearly shows the financial stress that the state government is in. The ways and means limit that was up to Rs 1 crore till last month, has been reduced to Rs 25 lakh, in the wake of fund shortage in the state exchequer.
In yet another major extravagant expenditure during the financial crisis, last month, the government had given clearance to spend Rs 35.16 crore for conducting exhibition-cum-sales fest across the state in connection with the first anniversary of the second LDF government under Pinarayi Vijayan. The government has been stressing on the need to maintain financial discipline in every aspect to tide over the acute financial crisis triggered by Covid-19.
Finance department had even instructed all administrative departments to recommend schemes and proposals by keeping austerity measures in mind.
