Mumbai: With the state govt in the red, it has issued directions to all departments to ensure they close or consolidate some existing schemes before proposing new ones to the state cabinet. In a new order issued by chief secretary Sujata Saunik, the govt stated that even if the cabinet approves any proposal but suggests changes or revisions in the financial burden or criteria, prior approval of the planning and finance department should be taken before issuing a government resolution (GR). This gives more power to Ajit Pawar, who heads the finance and planning departments.
Saunik has asked departments to mention the financial burden each proposal will have when submitting it to the cabinet. The GR refers to the 3rd National Conference of Chief Secretaries held by PM Modi in 2023 to take measures for better utilisation of limited funds and achieving rapid economic growth. Details about consolidation of schemes, organisations or corporations, reduction in unproductive subsidies or free schemes, and increase in productive capital expenditure should be included while submitting a cabinet proposal to start a new scheme or project, the GR stated.
In the state budget presented by Ajit Pawar last month, financial strain was apparent in the figures. The state’s debt projection is Rs 9.3 lakh crore, more than 10% higher than it was in 2024-25 when the figure was Rs 8.39 lakh crore. It is almost thrice as high as it was a decade ago. The revenue deficit—the gap between the state’s income and expenditure—is nearly Rs 20,000 crore more than the estimate last year, when it was Rs 26,535 crore.
“If the concerned department, while submitting the cabinet proposal, includes the financial burden, the number of supplementary demands can be limited, and control of the state economy can be maintained with greater capacity. Details of expenditure available to the department for ongoing schemes or initiatives and liabilities created earlier should be included in the cabinet note after reviewing the administrative approvals given. Details about the amount of fixed expenditure will increase by how many times must reflect (sic) in the financial burden,” the GR stated.
“58% of the total budget provision is spent on ‘essential’ items. So it’s necessary to make a conscious decision to limit the mandatory costs by using maximum technology. If the cabinet suggests any changes or revisions in the financial burden or criteria while taking a decision, prior approval of the planning and finance department should be taken,” the GR further stated.