Overtime allowances cut: In view of the fiscal pressure, the Finance Ministry has issued instructions to cut non-essential expenses. It is believed that the overtime allowance will be cut.
The government has set a target to cut non-scheme expenditure by 20 percent.
Overtime allowances cut: Due to Corona, the pressure on the government treasury has increased significantly. Revenue has declined, while it needs to spend more and more for economic recovery. In such a situation, the Finance Ministry asked all government departments and ministries to control their spending. Cut down on non-essential expenses, so that more can be spent in the places of need. According to reports, the government has directed to cut non-scheme expenditure by up to 20 percent.
In order to cut expenditure, the Finance Ministry has asked all the ministries to take necessary steps. The Finance Ministry has made 2019-20 as the base year for expenditure reduction. It is believed that under this overtime allowance will be cut, which will have a direct impact on Class-C employees. Apart from this, reduction in rewards is possible. Domestic and international travel allowance can be cut for senior officers. Apart from this, it is possible to cut the rent for government offices. Stationery items, electricity bills, royalty, publications, administrative costs, ration expenses, etc. can be included in the list of deductions.
The fiscal deficit target for the current financial year is 6.8%
In fact, at this time the government is under pressure from both fiscal deficit and revenue deficit. The fiscal deficit target for the financial year 2021-22 has been kept at 6.8 per cent. If the government wants to stay in this range, then it will have to cover its non-essential expenses in any case. The government’s fiscal deficit for the financial year 2020-21 stood at 9.3 per cent of GDP or 18.21 lakh crore.
Revenue deficit 7.42 per cent in FY21
According to the data released by the Control General of Accounts ie CGA, the revenue deficit in the financial year 2020-21 was 7.42 percent. The fiscal deficit for the full financial year stood at 9.3 per cent, which was estimated at 9.5 per cent of GDP. Presenting the budget of February 2020, Finance Minister Nirmala Sitharaman had estimated the fiscal deficit for the fiscal year 2021 at 7.96 lakh crore. It was 3.50 per cent of GDP.
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