Free Press Journal

CM requested not to announce schemes with financial implications

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BHOPAL :  Unsure of whether the state would be able to recover from the financial crisis it is facing in the current fiscal, the finance department has requested Chief Minister Shivraj Singh Chauhan to avoid making announcements that may put a heavy financial burden on the state exchequer.

Perhaps that was Chauhan did not make any major announcement during Women’s Panchayat, Young Entrepreneurship’s Panchayat and Panchayat of beneficiaries of self-employment schemes.

The government, to reduce its financial burden, has decided not to give any other benefit (except subsidy on fertilizers) in place of bonus on procurement of foodgrains from farmers on MSP. The Central Government has curtailed funds given to the state under various schemes. The schemes which were being run in collaboration with the Centre with expenditure being shared in the ratio of 75:25 have now been changed into ratio of 50:50. This has forced the state government to discontinue several schemes. Allotment of funds as state’s share under MGNREGS, PMGSY, BAGF and modernisation of police has been reduced and the government will have to run several schemes using its own resources.


According to officials of Finance Department, the state needs to observe austerity this year. Departments have been instructed not to spend irrationally. A senior official in Finance Department said even if the state’s share under Central taxes is raised from 32 to 42 per cent, the state is expected to face a loss of Rs 5,000 crore. The official maintains that measures have been put in action to cope with the deficit through Central schemes and state’s share.

Sources said preparations are being made to make permission from Finance Department mandatory for payment of more than Rs 5 lakh from September month of this year. The state government has to spend a big sum on Simhastha this year. Centre has been asked to release funds for Simhastha but no assurance has been given so far. The officers of Finance Department are busy preparing a list of centrally-funded schemes, which can be discontinued. Centre’s permission would be needed to discontinue them. An officer of Finance Department maintains that the state is not in a position to bear additional burden and that is why CM has been advised not to announce schemes

which may attract heavy expenses.