Table of Contents
- In a bid to save resources for “priority schemes“,
- The finance ministry on Friday issued a detailed list on expenditure management.
- Earlier, the department had extended curbs on expenditures by three months from July.
- It had in April classified government departments into three categories and tightened their spending for the April-June period,
- Barring for those fighting the outbreak.
- The ministries or departments under category ‘C’ such as petrochemicals, coal, commerce, telecommunications, among others, could spend only 15% of budget estimate
- for the current year.
- While those in category ‘B’ such as fertilizers, posts, defence services can spend only 20%.
- No curbs were placed for departments under category ‘A’ that include agriculture, ayurveda, pharmaceuticals, civil aviation, rural development, among others.
Why these measures
- The coronavirus pandemic has severely affected the revenues of the central government.
- India’s economy shrunk 23.9% in the June quarter.
- The total shortfall in collection of GST estimated at ₹2.35 lakh crore.
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