Maharashtra Cuts Spending For FY21 As Covid-19 Hits Revenue Collection

Maharashtra has decided to cut its spending for the year 2020-21 owing to the slowdown in the state’s economy on the back of the Covid-19 outbreak, according to the Government Resolution issued by Chief Secretary Ajoy Mehta.

“Due to various restrictions imposed during the lockdown, the state’s tax as well as non-tax revenue has come down which has adversely affected the state’s economy,” the resolution read.

The government of India’s richest state has taken the following decisions:

1. All departments have been asked to review their ongoing schemes and figure out those schemes which could be postponed or cancelled. For cancelled schemes, proposal should be sent by the departments to the Finance Department by May 31. And for the schemes which are to be postponed, departments can declare such schemes as “postponed schemes” at the departmental level.
2. All departments will get only 33 percent of the total budget for the year 2020-21. The departments have been asked to plan their schemes accordingly.
3. In this financial year, there should not be any expenditure on new schemes. This will also apply to the schemes approved by the cabinet till March 2020. Similarly, no new plans should be proposed.

Earlier, Finance Minister Ajit Pawar had announced that elected representatives including the chief minister, ministers and members of legislative assemblies, will get their salaries for March with 60 percent deduction.