In view of the ongoing financial crisis and to bring in transparency in the state administration, the finance department has decided to ban all kinds of exemptions and concessions provided by various government departments. The finance department has issued an order regarding the same. The state has around 38 departments, all of which have the right to give some kind of exemptions under their jurisdictions. According to the new order, they are prohibited from awarding any exemption till a further decision on the matter. The finance department has also issued a government resolution stating that the decision was taken in the light of current financial situation. Confirming the development, K. Shivaji, secretary, finance (reforms), said that the decision was to bring in more transparency on exemptions provided by various departments. “Departments used to give exemptions or concessions on their own without informing the finance department. Thus, we do not know the quantum of amount being given by them. There is also no mechanism to monitor the implementation of conditional exemptions,” Mr Shivaji said. He informed about the appointment of a new committee to look at such cases, which means that from now, every such proposal will have to go through the committee. “The restriction was made to streamline the process of exemption and bring in more transparency by appointing a committee. The committee will look at such proposals and take decisions accordingly. It will also enable the finance department to remain updated about the quantum of amount being exempted,” he said. The finance department is said to have already decided to impose a 20 per cent cut in the development programmes in the state. As a result, only 80 per cent of grants to all departments were released. However, Mr Shivaji denied the 20 per cent cut. “By now, 80 per cent of the total funds have been released. There is no cut at all, but a restricted release of grants and further decision will be taken according to the situation,” he said.
