Coronavirus crisis: Maharashtra govt to cut expenses, puts recruitment, new projects on hold
BusinessToday.In May 5, 2020
In a bid to tackle the economic situation arising out of the COVID 19 pandemic, Maharashtra, the worst-affected state, has announced a slew of measures, including no launch of new development projects and recruitment freeze. The government plans to cut expenses as revenue sources dry up. This will help the Uddhav Thackeray government to shore up revenue and meet unexpected expenditures like staff salaries and carry out important functions.
Maharashtra government's revenue has been severely hit as industrial and business activities remained largely crippled over the last one-and-a-half months.
The state's finance department on Monday issued a government resolution (GR) outlining a series of measures to cut expenses for the financial year 2020-21. In a four-page order, Chief Secretary Ajoy Mehta declared public health, medical education, food and civil supplies and relief and rehabilitation as 'priority' departments.
Here are the key measures announced by the Maharashtra government:
In February 2020, Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar had presented a budget of Rs 4.34 lakh crore. The total debt on the State till January 2020 was Rs 4,33,901 crore, the minister had said in his Budget speech.