COVID-19 lockdown: Financial crisis staring at Dispur, austerity measures the only way out

COVID-19 lockdown: Financial crisis staring at Dispur, austerity measures the only way out

STAFF REPORTER

GUWAHATI: Considering the acute financial crisis staring at the State government, various quarters in the State have suggested that the government should adopt several cost-cutting measures. They say that hiking VAT (Value-Added Tax) on petrol and diesel and increasing Excise tax etc are not enough to tide over the situation.

A retired bureaucrat said, “Around 76 per cent of funds of the State Budget comes from various Central government sources. Funds from own resources of the State government can be put at around 24 per cent only, which is not even enough for paying employees’ salaries, pensions and wages. At present the State government spends around Rs 30,000 crore annually i.e., around Rs 2,500 crore monthly for paying salaries, pensions and wages.

“In such a situation, the State government has to rely solely on the Centre for funds. However, as to how much help the Centre can extend to the State now is doubtful. This is because the Centre itself is badly affected by the fund crunch following COVID-19 and the lockdown. Now the only way left with Dispur is to adopt austerity measures as much as possible.

“The State government needs to cut various capital expenditures. Some of the expenditures like new appointment, training programmes for officers that burn big holes in the State exchequer, etc., should be put on hold. Officers’ frequent tours to Delhi should also be avoided and the purpose of such visits should be served with the help of the Resident Commissioner of the State at the national capital.” SAKP (Sadou Asam Karmachari Parishad) adviser Basab Kalita said, “The employees can feel the imminent cash crunch in the State. We’re ready for some sacrifices, but the government has to take the lead by adopting austerity measures. Frequent repair and renovation works and some of the populist schemes can be put on hold till the fiscal health of the State is restored. Some harsh measures have to be taken since the State’s own resources are meagre.”

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