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Govt Adopts Austerity Measure

IMPHAL, Mar 29: The State Government has decided to limit the yearly medical reimbursement provision entitled to a Government employee to Rs 20,000.

Informing that the Finance Department had issued an order to this effect, a source said the decision to limit the reimbursement amount was adopted as an austerity measure by the SPF Government, especially after grant of the 6th Central Revised Pay to its employees, has taken a heavy toll on its revenue collection.

It is said that as ‘balance from current resources’ remains more or less static in comparison to increase in expenditure as a consequence of the Govt’s approval to the 6th Central revised Pay expenditures from the non plan assistance had to be curbed culminating in the limit on medical reimbursement as a part of the austerity measure.

Quoting the Finance Department order issued by the Commissioner (Finance) DK Dewangan on March 26, the source explained that in case a medical reimbursement claim is found to be eligible but exceeds the prescribed limit (Rs 20,000) the Govt will bear half the amount of the excess expenditure incurred in the treatment.

It further pointed out that in paying salaries of the employees the 6th Central Revised Pay scale the SPF Govt faces a monthly deficit of Rs 83 crores.

The Planning Commission has also been urged to release an advance amount of Rs 600 crores under the plan assistance head.

(Courtesy: The Sangai Express)

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