Has the Bengal Government Restricted Expenditure Limits for Departmental Projects?

Synopsis
Key Takeaways
- Bengal government has limited departmental expenditure approvals.
- Only State Finance department can approve expenditures exceeding the new limit.
- Departments like health and public works are directly affected.
- Opposition claims funds may be diverted for political purposes.
- Economists suggest funds may be reserved for upcoming election incentives.
Kolkata, July 10 (NationPress) The financial strain on West Bengal's state exchequer was underscored on Thursday when the state government released a notification that substantially reduced the maximum limit for approving expenditures related to various developmental projects across different state departments.
The government clarified that departmental secretaries are now authorized to approve expenditures only up to this reduced threshold. Any costs exceeding this amount must receive approval from the State Finance department.
The departments affected by this new spending limit include critical sectors such as public works, irrigation, panchayat and rural development, health and family welfare, municipal affairs, urban development, north Bengal development, and housing, among others.
An insider from the State Finance department indicated that this restriction was necessary because some departments had been engaging in unjustified expenditures without adequately considering the funding sources, which stem from state budgets.
Furthermore, he pointed out that often, proper evaluations of the justifications for various departmental expenditures were lacking, making it crucial to limit the spending authority of departmental secretaries.
However, the Opposition BJP has alleged that the actual motive behind the state government’s decision is to restrict funding for essential public services and redirect those funds towards freebie schemes and entertainment-related expenses, such as annual donations for Durga Puja communities, especially with the significant Assembly elections approaching next year.
Economists seem to support the BJP's perspective. A city-based economist commented, "In this year’s state budget, there was no increase announced for Lakshmir Bhandar, the monthly financial assistance scheme for women. It is likely that a mid-term announcement will come from the Chief Minister to increase payments under this scheme just before the elections, indicating that funds are being reserved for that purpose."