Mumbai: The state government on Tuesday issued a circular, halting last-minute spending by its departments as the current fiscal year ends on March 31. Even drug purchase for state dispensaries and hospitals has been limited to available funds.
Deadline and Fiscal Context
According to the circular issued by the finance department, no department will be allowed to submit fresh proposals for purchases or non-priority expenditure after February 15. Though such directives are issued every year, they assume significance this time as the government has reportedly released only 52% of the total outlay sanctioned for various departments. Of the funds released, just 40% has been utilised, indicating the precarious state of the government’s finances, administrative sources said.
The government is attempting to save as much as possible from the current year’s budgetary provisions so that the amount can be carried forward to the next fiscal year 2026-27, the sources added.
Specific Restrictions
As per the circular, departments will not approve fresh purchases such as furniture, photocopiers, computers and spare parts. Expenses on renting office premises, holding seminars, and similar activities have also been restricted. Such proposals should not be forwarded to the finance department, the circular stated. Departments have also been directed to avoid issuing tenders for purchases after February 15.
The state’s finances are under severe strain, with the debt burden having risen to Rs9.5 lakh crore. During the ongoing financial year, the state has raised over Rs1.3 lakh crore through open market borrowings, sources said.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
