Panaji, June 10: Chief Minister Pramod Sawant-led state government in Goa has decided not to recruit fresh candidates in foreign and domestic tours in government departments and in state-funded autonomous bodies until December. The decision has been taken as a measure to overcome with the economic impact triggered by coronavirus.

Among the major decisions taken by the state government include deferement of capital expenditures, except those that are partly or fully funded by the Central government. Also, the government decided to put off project-specific borrowing for all government departments autonomous bodies, state-owned public sector undertakings (PSU) and local bodies till the year's end, reports Hindustan Times. Unlock 1: Hotels in Goa Will Require Permission From Tourism Department to Re-Open, 30 Applications Received on Official Website.

Apart from this, the government's austerity drive has included a compulsory economy class travel for all state ministers and bureaucrats. The state has banned hiring of vehicles for government use and on the purchase of new furniture, office equipment, etc. However, exceptions can be given in some rare cases.

According to the details, provided by various sources, the state government is facing an acute fund crunch to around 80 percent of the revenue shortfall. This shortfall can be attributed due to dip in Goods & Services Tax (GST) collections, following which Goa administration hiked excise duty on liquor by 50 percent.

However, the sales have declined as the tourism and hospitality sectors have been hit hard by the nationwide lockdown restrictions. Following this, VAT on petrol and diesel has been increased by 25 and 22 percent respectively. Apart from this, a 30 percent cut in their monthly salaries of state ministers and lawmakers till March 31, 2021 have been announced to tackle the financial crunch.

(The above story first appeared on LatestLY on Jun 10, 2020 05:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).