BHOPAL: The state treasury, in view of the financial crisis gripping the state, may stop accepting bills for payment before March this year. A ban on making new purchases, imposed by the finance department, is in place since December 31.

The decision may affect the funds allocated to the departments in the supplementary budget. The finance department does not have money equivalent to the budgetary allocations and the allocations may be curtailed. In cases where the allocations have been transferred to the departments, the government may block acceptance of bills.

The commercial tax department has informed chief minister about rise in  revenue collection in the quarter from October to December. The revenue collection declined in December and this trend would continue in January too. The revenue from transport has also declined.

Under these circumstances, a proposal to make permission from finance department compulsory for payment of bills for salaries, wages, scholarship and other necessary heads is under consideration. In the last fiscal, the government had made permission from finance department compulsory for submitting bills for payment in March end. This had led to several departments failing to submit their bills and the funds allocated to them in the third supplementary budget had lapsed.

The Finance department has asked departments to submit details of their expected expenditure so that budget allocation could be curtailed. Finance minister Jayant Mallaiya said tax collection in December has been affected but no decision regarding not accepting bills or putting any condition on the acceptance of bills has been taken.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal