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 also applies to local bodies, impacting their payments as well. The new rule requires approval from the finance department for bills exceeding Rs 5 lakh. As a result, even small bills will face delays in clearance, potentially stalling state administration. A notification regarding the revised treasury control has been circulated to all treasury officers by the additional chief secretary (finance).

In response to high expenses expected during Onam, the Centre approved an additional borrowing limit of Rs 4,200 crore for the state government. The total borrowing limit for the financial year is Rs 37,512 crore, with Rs 21,253 crore already borrowed by early September. The state plans to borrow the remaining amount between January and March of the following year. The state finance department is grappling with concerns over meeting salary, pension, pending bills, and arrears amidst the financial crisis. To address these challenges, the government has scaled down the State Plan to focus only on essential projects. A cabinet sub-committee has been formed to oversee this reduction in the Plan for the current financial year.Submit the Plan expenditure.