Thiruvananthapuram: The state government has further tightened control over the treasury by lowering the limit for bill clearance without restrictions from Rs 25 lakh to Rs 5 lakh. This restriction also applies to local bodies, affecting their payments as well. Under the new rules, bills exceeding Rs 5 lakh will require approval from the finance department. This may cause delays in the clearance of even smaller bills, potentially causing disruptions in state administration. A letter on treasury control from the additional chief secretary (finance) has been circulated to all treasury officers.

The Centre allowed the state government to borrow an additional Rs 4,200 crore for Onam expenses, as part of the total borrowing limit of Rs 37,512 crore for the financial year. The state had already borrowed Rs 21,253 crore by early September, with the remaining amount to be borrowed between January and March of the next year. Due to the financial strain, the state sought permission to borrow Rs 5,000 crore specifically for Onam expenses, and the Centre granted permission to borrow Rs 4,200 crore for this purpose.

As the financial crisis deepens, the state finance department is grappling with the challenge of meeting salary and pension obligations, as well as clearing a large backlog of bills and arrears. To address this, the government has decided to downsize the State Plan for the year, focusing only on essential projects. A cabinet sub-committee has been formed to oversee this downsizing, and the cabinet has approved the proposal accordingly.Please submit the Plan expenditure.