Till now, all divisional heads -- including the city engineer, additional city engineer, deputy commissioners, assistant commissioners and zonal heads -- could spend upto Rs two lakh without seeking the standing committee's permission. But according to the new order, no officer can now exercise such powers for amounts exceeding Rs 25,000 for office automation or purchasing furniture.

Jagdeesan, issuing the order for `effective administrative and budgetary control', said, ``it was necessary to impose certain restrictions on the expenditure.'' These powers should be exercised for new works, maintenance and repairs of road, bridges, school buildings, hospitals, gardens, water supply and sewage works, he directed officials, adding that under no circumstances should the work be work sub-divided.

In another circular, Jagdeesan directed officials that proposals for supply of material and execution of work amounting to Rs two lakh be sent to him within three days.

According to Director of Planning R D Desai, Jagdeesan had issued the orders as the officials had misused their powers.``Most officials seemed to have spent the money to appease certain councillors,'' he claimed.

In the last general board meeting standing committee member Madansinh Atodaria had come down heavily on civic officials for squandering money. Talking to Express Newsline, Atodaria justified the commissioner's orders. ``There was a need to cut down the expenditure. Already the octroi income is falling and we require Rs 100 crore to meet the expenses. Where will the money come from,'' he observed.

On its part, the SMC submitted proposals to the World Bank seeking loan for infrastructure development. Jagdeesan met the WB officials in Gandhinagar on January 21 during which he submitted a detailed proposal for water supply, sewage works, flyover, bridges and roads and flood protection. The SMC requires Rs 10,346 crore to implement various projects. ``So far we have got no assurance from the World Bank officials. We are just awaiting response,'' a senior civic official said.