Telangana Chief Minister K Chandrasekhar Rao has asked all departments of the state government to observe strict financial prudence and not spend even one rupee additionally to the budgeted allocations.
He gave the directive in view of the economic slowdown and alleged non-receipt of funds from the Centre.
The instructions were given by him during a Cabinet meeting that concluded late Wednesday.
The Cabinet discussed the state's financial situation, funds due from the Centre and other related economic issues, an official press release said.
Rao said the government revenue has fallen in the state due to economic slowdown.
The devolution of funds, GST compensation and other funds were not being received from the Centre, he was quoted as saying in the release.
In view of these circumstances, all departments must observe control in expenditure as the situation can be faced only with proper financial discipline, he said.
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The meeting discussed ways to secure additional income andcorrecting defects in spending, the release said.
The ministers and secretaries of all departments must exercise caution in using their funds, Rao said.
The TRS MPs held a protest on Parliament premises on Wednesday, demanding that the Centre release GST dues to the state.
Among other decisions, the Cabinet decided to construct a barrage across Godavari river at Dummugudem which can facilitate generation of power with a capacity of 320 MW.
The estimated cost of the barrage is Rs 3,482 crore and the Cabinet has decided allocate funds in the budgets for two years, the release said.
The Cabinet has also decided to undertake constructions for transfer of three tmc water upto Mid-Manair as part of the state governments flagship Kaleswaram irrigation project.
The project, at present, can lift two tmc of water per day, but an additional one tmc of water can be lifted in view of abundant availability of water, officials proposed, the release said.
Accordingly, the Cabinet has decided to take up works for lifting the additional one tmc of water at an estimated cost of Rs 11,806 crore, it said.
The Cabinet has also discussed the progress of Palle Pragati, a 30-day special programme, undertaken by the government earlier with peoples participation to ensure cleanliness and greenery in villages.
Rao expressed anger on officials for failing to continue the spirit of the campaign which received a great positive response from people, it said.
He asked the secretary of Panchayati Raj as to why necessary steps to continue the programme have not been taken, and directed that the campaign be carried on without any slackening of focus.
He directed that the cleanliness drive be continued for 10 days next month, it added.