Expenditure Management - Government Departments to tighten belts
IN the context of the current fiscal situation where there is a tremendous pressure on Government's resources, there is an urgent need for rationalization of expenditure and optimization of available resources with a view to improve the macroeconomic environment, says the Secretary (Expenditure) in the Finance Ministry. He wants babus to spend less in all activities.
Cut in Non-Plan expenditure: For the year 2012 2013, Every Ministry/Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and the Finance Commission grants to the States. No re-appropriation of funds to augment the non-Plan heads of expenditure on which cuts have been imposed, shall be allowed during the current year.
Seminars and Conferences: Utmost economy shall be observed in organizing conferences/Seminars/workshops. Only such conferences, workshops, seminars, etc. which are absolutely essential, should be held and even there a 10% cut on budgetary allocations for seminars/ conferences shall be effected.
Holding of exhibitions/seminars/conferences abroad is strongly discouraged except in the case of exhibitions for trade promotion.
There will be a ban on holding of meetings and conferences at five star hotels.
Purchase of vehicles: Purchase of vehicles is banned until further orders, including against condemned vehicles. (Who's buying vehicles now a days – they are all on fancy hired cars)
Foreign Travel: It would be the responsibility of the Secretary of each Ministry/Department to ensure that foreign travel is restricted to most necessary and unavoidable official engagements based on functional necessity and extant instructions, including on the number of visits, are strictly followed.
Creation of Posts: There will be a total ban on creation of Plan and Non-Plan posts. (No Cadre Review?)