Most departments asked to put off major projects

Visakhapatnam: The finance ministry directed all the district administration offices and heads of all the departments to strictly maintain financial discipline and not to send new proposals for various projects. As there is no improvement in the government exchequer the finance ministry suggested the other departments to postpone the major projects which have been not yet started. The ministry has also directed the departments not to encourage any sort of additional payments to the ongoing works.

Since, beginning of the present fiscal, the finance department has been facing lots of troubles to meet the expenditure. As there is no progress in revenue generation and controlling the increasing expenditure, the department has been searching for all ways and means to cut down expenditure.

However, with the huge expectations on the government, the department has been struggling to attend to the welfare programmes. Meanwhile, the lion’s share in the total income has been allocated to salaries and pensions only. Normally, the financial troubles will occur at the end of the financial year mostly in February and March. However, in the present fiscal, the finance department has been facing crisis every month.

According to highly placed sources, the senior officials of the department also informed the Chief Minister’s Office to suggest to Chief Minister N Chandrababu Naidu to not announce and assure major projects and works further. Meanwhile, the Finance Department has also informed other departments not to pressurise the department for more funds and financial sanctions.

“Yes, the department has been facing lots of troubles. Every month we are doing big exercises to attend the needs and demands. There is a huge gap between the income and expenditure. The State has not been receiving financial help from the Centre as per expectations. The impact of the demonetisation and GST has been crystal clear on the State.

The department has already directed the district administration offices and heads of the department to postpone whatever major projects, which are not yet started. In the existing scenario, it is not possible to take up some projects like Metro Rail in Vizag and Vijayawada,” a senior official of finance department said.

Meanwhile, the departments like irrigation, medical, panchayat raj, roads and building have been suffering as large extent of bills are piled up in the treasuries. The contractors are pressuring the officials to clear the pending bills.

As there is no response from the officials, the contractors are approaching the ministers and other influential leaders and urging them to clear their bills against the completed works. When contacted a District Treasury Officer confirmed that the finance department is giving directions on a day- to- day basis to clear the bills.

BY VKL Gayatri