Nagaland to adopt austerity measures

KOHIMA, Feb 27 — In order to contain spiralling overdraft from RBI and ever-increasing non-plan expenditure, Nagaland government has decided to enforce economy measures, including postponement of the release of development funds to various departments, with immediate effect, reports PTI. The State cabinet Tuesday reviewed the latest fiscal position of the State in the backdrop of increasing overdraft from the Central bank and decided that no additional allocation beyond the budgeted amount be given to any department except in unavoidable circumstances. State Finance Commissioner Lalthara Wednesday said the meeting presided over by the Chief Minister SC Jamir, who is also holding Finance portfolio, directed the department not to divert salary heads under any circumstance. In order to contain overdraft, the government decided to release all funds received from the Centre after February 28 during the current fiscal on account of centrally-sponsored scheme (CSS), non-lapsable pool and from other sources during the next financial year. As decided earlier, the payments against plan works would be made only after completion of the schemes and projects, except in certain cases, where there is a system of advance payment or payment of running bills duly incorporated in the deeds of contract, the meeting decided. The government decided to continue with the existing ban on purchase of new vehicles for another year, Lalthara said. As part of its austerity measures, the government recently decided to withdraw vehicles from officers in the rank of joint secretary and additional directors.