Fiscal Discipline

Fiscal Discipline
  • 1

The Jammu and Kashmir government has finally decided to expedite resource utilization as the Finance department has issued comprehensive guidelines to enforce fiscal discipline.
The fiscal discipline would ensure that officials don’t indulge in over spending and unwanted ostentations, which lead to lot of money being drained from the state ex-chequer.
According to the recent government order no payments shall be made by any Treasury Officer/PAO from the 1st April 2018, under any expenditure head, if the releases for the same has not been made and further received by the spending and bill passing officers via BEAMS. Treasury Officers/PAOs shall be personally liable for making payments on the funds released and received by-passing the BEAMS application.
The fiscal discipline can lead to many checks and balances but the most important factor is that the order which has been issued needs to implemented in letter and spirit and the government departments should follow it.
The fiscal discipline is a good move but it remains to be seen whether the people at the helm would allow it to be successful or not. Ultimately it’s the officials who have to ensure that “fiscal discipline” in Jammu and Kashmir becomes are reality and it sees the light of the day.
Another rider which has been put at place is that funds for “Maintenance and Repairs” shall be spent only after detailed expenditure and action plan distributed into different components is approved by the competent authority with the concurrence of Director Finance IFA & CAO of the Department as the case may be. Besides this there are slew of measures which have been ordered to save the money of tax payers.