SHILLONG: The state government is facing financial crunch but there are no visible steps taken by the government to curtail expenditure since the state has been facing the burden of recommendation of the Fifth Pay Commission and loss due to NGT ban on coal mining.
Though the Finance Department in September this year issued a slew of austerity measures, including restriction on purchase of vehicles, travel expenses, furnishing of buildings, hosting dinners and creation of posts, these initiatives remained only in papers.
An official source admitted that whenever there is a necessity, these austerity measures are bypassed.
A state government official said the impact of the implementation of the Fifth Pay Commission recommendation is that the government has to spend Rs 1,000 crore per year by way of salary and pension of its employees.
Besides, the government will have to address the issue of loss incurred following the ban on coal mining by the NGT. The state is losing Rs 700 crore annually due to the coal mining ban since April 2014.
The NPP-led MDA government is also spending several crores of rupees in terms of perks and other allowances to political appointees but without any tangible results, sources said.
Though Chief Minister Conrad Sangma in the past had assured that the government would streamline holding of festivals, no restriction was imposed.
In addition, the government also takes loans and interest payment is another factor which prevents better financial management, the sources added.
Though the state government hopes to get the benefits of GST, more central grants can only help the government concentrate on development, an official said.
