Thiruvananthapuram: The state government took steps to strengthen treasury control on Wednesday by lowering the threshold for bills to be cleared without restrictions from Rs 25 lakh to Rs 5 lakh. This new regulation also applies to local bodies, meaning payments for local bodies will be impacted as well. Under the new rule, bills exceeding Rs 5 lakh will require approval from the finance department before they can be processed, potentially causing delays in the state administration. A letter on the revised treasury control guidelines, issued by the additional chief secretary (finance) and obtained by TOI, has been circulated to all treasury officers.

In response to the state government's request for additional funds to cover Onam expenses, the Centre authorized borrowing an extra Rs 4,200 crore on top of the existing borrowing limit of Rs 37,512 crore for the financial year. By early September, Rs 21,253 crore had already been borrowed, with the remainder expected to be borrowed between January and March of the following year. The government's financial challenges have raised concerns about meeting salary, pension, pending bills, and arrears obligations.

Recognizing the financial constraints, the state government has decided to scale back on its State Plan commitments for the current financial year, focusing only on essential projects. A cabinet sub-committee has been established to oversee the proposed reduction in the State Plan for the year.Submit the planned expenditure.