The Finance department has eased the restrictions on the treasury in clearing bills up to ₹25 lakh. Finance Minister K.N. Balagopal’s office said on Monday that directions had been issued to the Treasury department to clear bills up to ₹25 lakh.
Last year, citing financial crunch, the government had placed restrictions on the treasury from clearing bills over ₹5 lakh. The government had lowered the limit from ₹10 lakh set earlier in 2023.
Last year, the restrictions were placed at the height of the State’s battle with the Union government over the latter’s fiscal policies. The Opposition UDF, on its part, had blamed poor financial management by the LDF government for the “dismal plight” of the treasury.
As part of the directions concerning the State treasury, the Finance department had also directed public sector units (PSU) and other State-controlled agencies in December 2023 to park their funds in the State treasury rather than banks if the former was offering a higher interest.
