Finance department approval now required for bills exceeding 500,000.
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 tightened treasury control by reducing the limit for bill clearance without restrictions from Rs 25 lakh to Rs 5 lakh. This restriction now applies to local bodies as well, affecting their payments. Approval from the finance department will be necessary for bills exceeding Rs 5 lakh. This may cause delays as even smaller bills will await approval from the treasury. A letter from the additional chief secretary (finance) regarding treasury control has been sent to all treasury officers. The Centre permitted the state government to borrow an additional Rs 4,200 crore for Onam expenses. The state is allowed to borrow a total of Rs 37,512 crore for the current financial year, with Rs 21,253 crore already borrowed by early September. The remaining amount will be borrowed between January and March of the next year. Due to the financial strain, the state is grappling with issues of paying salaries, pensions, pending bills, and arrears. To address this, the state government has decided to reduce the State Plan to essential projects only, leading to significant budget cuts. A cabinet sub-committee has been appointed to oversee this reduction.Implement the planned spending.