New Delhi: The central government has announced various measures to cut spending as revenue has been reduced due to the effects of the corona epidemic. Efforts have been made to save more and more funds. New posts have been banned. Establishment days, festivals and other meeting committees being held in government offices are being discouraged. “Everywhere you look today, the tide of protectionist sentiment is flowing. Departments have been asked to reduce the cost of transportation, baggage and souvenirs to participate in the meeting. Paper imports and printing of books are prohibited. Departments have been told not to create new posts. The approval of the Department of Expenses must be obtained before creating a new position. “If any vacancies are created and the vacancies are not filled, it will be suspended,” he said. The spending cuts rule has been asked to be strictly adhered to.
The central government is struggling to increase revenue after the outbreak. GST collection has also been severely affected. That is why the Center has expressed its inability to pay compensation to the states. The government has offered two options to increase the amount of debt compensation for states. One is that the states will borrow Rs 6,000 crore from the provisions to be made in the Reserve Bank, which will not be considered as loans in their accounts. The second option is for states to borrow Rs 2.35 lakh crore which they will repay in a few years. Eight non-BJP-ruled states, including West Bengal and Tamil Nadu, have written to the chief minister, Prime Minister Narendra Modi, protesting the government’s two options. They have appealed to the Prime Minister to intervene in the matter. On the one hand, the Center has to spend huge sums to deal with the corona, while the decline in revenue has posed a major challenge to the Modi government.
