Ban imposed on unnecessary purchases by Government departments and local self-government bodies

• Chief Minister issues order immediately after taking charge of Finance Department

• Unnecessary expenditure to be curtailed

Mumbai – Following the untimely demise of former Finance Minister Ajit Pawar, Chief Minister Devendra Fadnavis has taken charge of the Finance Department. He has given clear indications of exercising strict control over expenditure after undertaking a detailed review of the department. As a first step, he has ordered an immediate ban on issuing new tenders and granting administrative approval to purchase proposals across various Government departments, offices under their control, Government corporations, grant-in-aid institutions, as well as urban and rural local self-government bodies. This decision will automatically bring control over unnecessary and arbitrary purchases by Government departments across the State. Its impact will be visible at all levels of the administration.

Under the pretext of routine administrative requirements, various departments routinely undertake purchases such as furniture repairs, computers and other equipment, spare parts, hiring of office premises, organisation of programmes, physical workshops, office amenities, training programmes, and repair of equipment. Restrictions will now apply to such routine expenditures as well. From 15 February, no purchase proposals of any department will be approved, and the process of issuing new tenders will also be halted. This is expected to result in substantial financial savings.

The purchase of medicines has been exempted from these restrictions. The Health Department and the Medical Education Department have been permitted to procure essential drug stocks. In addition, expenditure on purchase proposals related to centrally sponsored schemes, the State’s share therein, and projects receiving assistance through other channels has been allowed.

It is stated that towards the end of the financial year, many departments rush to exhaust available funds through hurried purchases, placing an unnecessary burden on the Government treasury. This stringent decision has reportedly been taken precisely to prevent such wasteful spending.