Gujarat govt to take austerity measures following slash in revenues

The 'Adhia Committee' formed by the Gujarat government for the economic revival after the slowdown has recommended the government to take austerity measures till the completion of this fiscal. Following which the Gujarat government on Saturday announced certain restrictions on expenditure.

The coronavirus outbreak has badly affected the state government's revenues and also the industries in the state.

The state government has formed a six-member committee (an expert advisory group) headed by former Finance Secretary in the Union government, Hasmukh Adhia, for economic revival in the state.

The Gujarat government on Saturday, in a press release, stated that due to the prohibitions and restrictions on various activities in the state, following the provisions of lockdown, the revenue generated to the state government has taken a huge deep.

According to the committee's interim report, it is necessary now to put a cut in the government expenditure. Following this, the Gujarat government on Saturday announced certain austerity measures where the purchase of new vehicles and sanctioning of new vehicles has been put on hold till the next fiscal.

The curb has also been put on new rentals for rented vehicles and sanctioning of vehicles on rent for the same period.

Similarly, all procurements of new machinery like computers, printers, photocopy machines, ACs and other required machines and peripherals have been prohibited till March 31. Likewise, all new furniture procurement has also been put on hold.

Besides this, all government offices have been instructed to control electricity bills and take necessary action to bring down the power consumption and billing amount.