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No new govt schemes for a year, says finance ministry

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The finance ministry has said that no new government schemes will start for a year. The move is aimed at tightening the purse strings as the government battles drop in revenues due to the slump in economy following the lockdownd to contain the spread of COVID19 in the country.

The ministry said that all departments have been directed not to send requests for new schemes to the finance ministry. The ministry said spendings, however, will continue for the Prime Minister’s Garib Kalyan Package and the announcements made under the Atmanirbhar Bharat package recently.

No other scheme would be approved this financial year, said the ministry.

“It may be appreciated that in the wake of the COVID-19 pandemic, there is an unprecedented demand on public financial resources and a need to use resources prudently in accordance with emerging and changing priorities,” a finance ministry note said.

It also said that schemes already approved under the Budget will stay suspended till March 31.

It also said that any exceptions will have to be approved by the department of expenditure, media reports quoted.

The country has recorded its slowest GDP growth in 11 years. The country’s credit rating was also just one step closer to junk after Moody’s Investors Service downgraded the nation to the lowest investment grade level.