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No new cars, 25% ad spend cut in Uttar Pradesh

Author: Aman Sharma
Publication: The Economic Times
Date:  May 19, 2020
URL:      https://m.economictimes.com/news/politics-and-nation/no-new-cars-25-ad-spend-cut-in-uttar-pradesh/amp_articleshow/75813822.cms?__twitter_impression=true

ET has accessed a detailed order passed by the UP government on Monday, which says there is a shortfall of revenue and funds need to be spent on fighting Covid-19 and other issues of public interest.

Faced with a “huge revenue crunch due to the lockdown”, the Yogi Adityanath government vide an order has gone for major austerity measures for the present financial year, including scrapping certain state-funded development schemes, not starting new construction projects and cutting 25 percent expense on government advertising and publicity.

ET has accessed a detailed order passed by the UP government in this regard on Monday, which says there is a shortfall of revenue and funds need to be spent on fighting Covid-19 and other issues of public interest.

The order bans all business/executive class air travel by state officials, asks for preference to be given to meetings over video-conference and bans holding any seminars or workshops in hotels as well as the purchase of new vehicles. A review has also been ordered of all posts in government departments which have become “redundant due to change in work culture and information technology”. The order says such posts should be scrapped, staff working on these posts to be adjusted on other vacant posts and no new posts are created in any department in the present financial year. A 25 percent cut in administrative expenses and various other office expenses has also been ordered.

Another major measure ordered is to not start any new construction project which is not extremely important and only focus on completing existing projects given the limited resources at the disposal of the state government. The government has also asked for a detailed review by all departments of various state-funded development schemes and “only operationalise those schemes in this financial year which are considered “helpful and necessary” and put on hold the other ones.

The order by the UP government also says that regarding the Centrally-sponsored schemes, earlier the entire money from the Centre was allocated to the departments in one go but this will no longer be the case. “In the present circumstances where there is a large shortfall in state government revenue, the central and state share of these schemes will be released to the departments in phases as per the requirement,” the order says.

 

 
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