"Finance Department Approval Required for Bills Exceeding 5 Lakhs"
Thiruvananthapuram: The state govt on Wednesday tightened treasury control further by reducing the limit up to which the bills can be cleared without any restrictions from Rs 25 lakh to Rs 5 lakh. Thi...
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Thiruvananthapuram: The state government has taken steps to increase control over treasury operations by lowering the limit for bills to be cleared without restrictions from Rs 25 lakh to Rs 5 lakh. This change will also affect payments made by local bodies. Moving forward, bills exceeding Rs 5 lakh will require approval from the finance department before they can be processed, potentially causing delays in clearing even smaller bills. All treasury officers have been notified of this change through a letter from the additional chief secretary of finance. Additionally, the Centre has allowed the state government to borrow an extra Rs 4,200 crore for Onam expenses, out of the total borrowing limit of Rs 37,512 crore for the financial year. With concerns about meeting financial obligations such as salaries, pensions, pending bills, and arrears, the state finance department is grappling with the financial crisis. The government has decided to scale down the State Plan for the current financial year to focus only on essential projects, leading to a significant reduction in the planned expenditures. A cabinet sub-committee has been formed to oversee this process, and the cabinet has approved the proposal to resize the State Plan accordingly.Implement the planned expenditure.