Thiruvananthapuram: With state continuing to grapple with fiscal constraints, finance department told all govt departments that any demand for higher allocations in 2027-28 budget must be backed by clear justification, warning that proposals for increased spending without adequate reasons won’t be considered. The move indicates much tighter scrutiny of departmental spending as govt begins preparations for next year’s budget.In a detailed circular issued to heads of departments and estimating officers, finance department directed them to prepare realistic budget estimates based on actual requirements, instead of following the routine practice of incremental budgeting. Departments have been asked to explain every variation between the revised estimates for 2026-27 and budget estimates for 2027-28.Calling for austerity measures, the department said non-salary revenue expenditure should generally be retained at current year’s revised estimate level. It asked departments to identify and discontinue uneconomical schemes, defer maintenance works that can be postponed and critically review every programme, scheme and work before seeking fresh allocations. Budget preparation shouldn’t become a mechanical annual exercise and must instead involve detailed scrutiny by heads of departments, it said.The circular also directs departments to identify surplus staff generated due to closure or deferment of schemes and maintain a list for redeployment against future vacancies instead of retrenchment. Administrative departments have been asked to examine the need for continuing temporary establishments in the coming financial year.Salary estimates must be prepared with precision using actual employee strength and SPARK payroll data. Departments have been asked to furnish sanctioned strength, employees in position, pay details and explain any variation in staff strength or salary expenditure from the previous year. Separate details have been sought for employees drawing UGC and similar pay scales.To strengthen revenue mobilisation, finance department sought year-wise details of tax and non-tax arrears, reasons for their accumulation and measures taken to recover them. Departments have been instructed to submit budget proposals through the budget monitoring system within the prescribed deadlines, with revenue estimates due by Sept 20.
