|
Expenditure management and control is a vital aspect of fiscal reform. The state
government has instituted some austerity measures since 1992-93, including
an attempt at downsizing the government and restricting official tours, but
these have had an insignificant effect on saving (which increased from Rs 20
lakh to Rs 50 lakh between 1997-98 and 1998-99). A bigger impact on savings
will be possible by curbing discretionary expenditure on various schemes. Other
areas of expenditure management are listed below.
-
One-third of total government expenditure goes towards financing wages
and salaries. The pay commission provisions which were implemented from
1996 has
increased the expenses of the state exchequer by Rs 53.20 crore per annum.
The present annual liability for wages and salaries is more than Rs 175
crore, which us an increase form 20 per cent to 34 per cent of GDSP between
1995-96
and 1998-99. The government is grossly overstaffed. New appointments and
creation of new posts should be halted. Staffing of all the departments
should be reviewed
and the existing Labour force more efficiently deployed.
-
Out of the plan allocation, nearly 20 per cent is spent on wages and salaries.
Employment that is created under the plan and centrally sponsored
schemes (CSS) should be temporary in nature; at present these workers
continue
to be employed
even after completion of the schemes.
-
Current employment in the work-charged and muster-roll establishments-particularly
the department of Public Works and Roads and Bridges-should be
reviewed for downsizing.
-
The provision of vehicles to government employees is excessive.
In states like Rajasthan this facility has been curbed systematically
and effectively.
Given the absence of a public transport system in Gangtok, buses
can be introduced to transport employees to and from work; apart
from economizing on expenditure,
this will also improve office attendance and punctuality.
-
Non-plan expenditure needs to be focused on to bring down the
costs of operation and maintenance. This to ensure that the
assets created
over two decades of
planning are well maintained. In fact, maintaining roads, schools
and dispensaries has become more important than creating new
assets, which, without proper maintenance,
become dysfunctional in a few years time.
In table 3.5, the annual cost of various subsidies given by the
state government to its enterprises have been listed separately.
Subsidies/Concessions to various industrial units may be in the
form of capital investment subsidy, concessionary state sales tax,
subsidies on interest on working capital, on power consumption,
power generation sets etc. The cooperative department receives,
among other concessions, managerial and rent subsidies. The Department
of Animal Husbandry and Veterinary Services broadly gives two types
of subsidies: for purchase of animals (cows, pigs, sheep and goats)
and to the Sikkim Milk Union to meet the operational losses of
the government.
|