The State Government is gearing up to introduce a ‘zero-based budget’ from the next financial year, rather than opting for incremental allocations to departments, for a result oriented approach and ensuring that the fruits of welfare and development reached genuine beneficiaries.

Indicating that the Government wants reforms in expenditure, the Finance department has made it clear that allocations would forthwith be made on a quarterly basis and subject to submission of utilisation certificates. The decision comes in the light of the “tight fiscal situation” faced by the State, which started off with a deficit budget of over Rs. 16,000 crore.

“The revenue situation remains tight and there are several programmes that need to be implemented. The gap in resources needs to be bridged and this will be possible only when the efficiency improves,” Finance Minister Yanamala Ramakrishnudu said. He was addressing the participants of a pre-budget meeting of secretaries, heads of departments, collectors and superintendents of police convened here on Wednesday.

He told the participants that in the light of the financial constraints faced by the State post bifurcation, the Government focussed on scrutinising the schemes under implementation and release funds after analysing the results achieved by each department. He said there was no scope for significant increase in revenues in the near term as the Government was against imposing new taxes that would burden the common man. “Efforts are on to introduce a tax free budget as far as possible,” he averred.

Mr. Ramakrishnudu expressed concern that several departments were lagging in spending the amounts released to them as this was in turn showing up as deficit at the Government level.

The situation if allowed to continue would hit the fiscal parameters that would, in turn, hit the financial credibility of the State. “We will be left with no sources to mobilise funds if the credibility is affected,” he said exhorting the officials concerned to present realistic demands based on outcomes for securing funds.

The Finance Minister explained how difficult it was for the State to face the steep increase in revenue expenditure at a time when it was facing shortages to meet the capital expenditure that was hitting investments in the public sector. “This needs to be set right,” he said stressing the need for maintain fiscal prudence to contain revenue deficit, fiscal deficit and other financial parameters.

Source: TH