Assam government spells out austerity measures in the wake of COVID-19 outbreak

STAFF REPORTER

GUWAHATI: As anticipated, the State government has taken a slew of measures to cut its cost in the wake of the COVID-19 outbreak.

Announcing the austerity measures taken by the government before the media here on Wednesday, State Finance Minister Himanta Biswa Sarma said, “Not only Assam, the entire nation is ridden with a financial crisis in the wake of COVID-19. The cost-cutting measures we’ve taken now aren’t rigid. Depending on the economic condition of the State, there will be changes later.”

Citing examples, Sarma said, “The GST collection in April 2020 is only 192 crore against Rs 932 crore in April 2019. This is a record 80 per cent fall in GST collection. Earlier, we collected Rs 340-crore tax per month on an average from petroleum products. However in April this year, we’ve collected just Rs 70-crore from them. Even then, we’re going ahead by striking the balance through honest efforts. Many other State governments have taken diverse measures, including some harsh ones. We haven’t opted to go that way. Even in this crisis, we’re going to the pay full salaries of April to the employees, but after May 8.”

The austerity measures as spelt out by the State Finance Minister are:

i Barring foreign-aided and Centrally-sponsored schemes, no administrative department can take any new development schemes without concurrence from the Finance Department;

ii Establishment expenditures like expenditure on fuel consumption, tea, various purchases etc., have been reduced to 10 per cent against the existing 25 per cent in the first quarter of the financial year;

iii Without permission from the Chief Minister, no department can buy new vehicles;

iv No seminar, workshop, conference etc., can be held in the first quarter of the fiscal (in urgent cases, video-conference can be held);

v Barring the Governor, the Chief Minister, the Chief Justice of the Gauhati High Court, the Judges of the Gauhati High Court and the Chief Secretary; no one else can travel in ‘Executive Class;

vi The Governor, Ministers and MLAs have agreed to draw their salaries with 30 per cent reduction;

vii Officers on official tour cannot halt in five-star hotels;

viii There’ll be no foreign tour if not sponsored by the Government of India or any foreign country;

ix Barring the Assam Gas Cracker Project, the first quarter reimbursement given to industries as incentives has been put on halt;

x 25 per cent slash in the salaries of Chairmen and Vice Chairmen of Public Sector Undertakings, Boards and Corporations;

xi Suspension of the fund release under the MLAs’ Local Area Development Funds in the first quarter of fiscal 2020-21.

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