Chandigarh will see the effect of getting less budget, new projects will not be started, old ones will also hang
Chandigarh has got a much lower budget than expected. With this, the projects already running will hang, new ones will not be able to start. The administration has already started making up for the cut. For this, strict instructions have been issued to all department heads to spend the budget of the prescribed limit per quarter. Advisor Manoj Parida has made it clear to all HODs.
Each quarter will have to spend 25 percent of the budget. The preparation behind this is to demand additional budget by spending the prescribed budget till Revised Estimate (RE). RE is fixed by the budget spending report of two quarters by September. Therefore, the administration has already started preparing for RE. So that an additional budget can be achieved in RE at all costs.
Budget has been available in RE
In RE, the finance ministry decides whether to give the money after looking at the budget spending report. The administration received nothing in RE this year because of the Corona epidemic. While the demand was sent to more than 300 crores. The reason for this was also that on the directive of the central government, less than 5 percent of the budget was spent per quarter. Due to which a cut of Rs 493 crores was done. This was also the reason for the low budget.
In view of the cut of RE, in the new financial year, Rs 5186 crore was received in the budget. Before this something has been found in RE. 260 crore was received in the financial year 2019-20. Even before that, about 300 crores were received. This time administration preparations are already underway. So that demand can be sent in view of the remaining requirement in RE. Then according to the same demand additional budget can be found.
Land acquisition, RE for urgent projects
In RE, an additional budget is given to the administration, given the special circumstances and the status of the earlier budget. It mainly provides money for land acquisition and for any important project. The administration has just received less budget. So there is already a possibility of getting an additional budget in RE.
