New rule requires approval from finance department for bills exceeding 500,000 rupees.
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...
1
views

In Thiruvananthapuram, the state government has implemented stricter controls on treasury spending. Previously bills could be cleared up to Rs 25 lakh without restrictions, but this has now been reduced to Rs 5 lakh. This new restriction applies to local bodies as well, meaning their payments will also be impacted. Approval from the finance department will now be required for bills exceeding Rs 5 lakh, potentially causing delays in processing payments. A letter regarding these new treasury controls from the additional chief secretary (finance) has been sent to all treasury officers. The Centre has allowed the state government to borrow an additional Rs 4,200 crore for Onam expenses, out of the total borrowing limit of Rs 37,512 crore for the financial year. With the financial situation deteriorating, the state finance department is facing challenges in meeting salary, pension, pending bills, and arrears payments. As a result, the state government has decided to reduce the State Plan for the current financial year to essential projects only, leading to significant cuts.Submit the planned expenditure.