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Odisha Govt Withdraws Expenditure Rationalisation Measures

Bhubaneswar: Even as the fear of resurgence of Covid-19 sending some states in the country to go on lockdown mode once again, the Odisha government on Thursday withdrew the expenditure rationalisation measures imposed last year in the wake of economic downturn due to the pandemic.

It is believed that the decision has been taken to allow the government to go full throttle in developmental mode to create jobs and revitalize the economy battered by the pandemic.

State Finance Dept Principal Secretary Ashok Meena has asked secretaries of all departments to instruct the COs and DDOs under their respective control to take necessary steps to facilitate higher public spending in priority sectors during the remaining period of the fiscal year 2020-21 as well as in the coming year.

With constant monitoring of the pandemic situation, full-scale resumption of economic activities and vaccination drive across the country, the State economy is experiencing recovery resulting in improvement in resource realisation of the State government. The priority has now shifted towards higher investment in priority sectors for the revival of the economy and employment generation, Meena explained in a letter.

The government has however mentioned that money from the treasury shall be drawn only for actual expenditure during the current financial year and not for parking in bank accounts.

The rule will also be applicable to all aided institutions, co-operatives and autonomous organisations.

Keeping in view the pandemic situation and nation-wide lockdown/ shutdown which interrupted the economic activities resulting in a shortfall in the realisation of resources, the government had imposed expenditure rationalisation measures for all the departments on July 7, 2020.

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