New Delhi: Calling for cutting expenditure, given the current state of the Indian economy and state funds, the finance ministry yesterday asked all government departments to check avoidable spending in areas like five-star hotel spending and first class air travel for officials.
A target of 10 percent cut in non-plan expenditure has also been set. In the budget presented in July, the non-plan expenditure was pegged at Rs12,19,892 crore for the entire fiscal.
“In the context of the current fiscal situation, there is a need to continue to rationalise expenditure and optimise available resources,” the ministry said.
The austerity measures include a bar on government officials from first class air travel on overseas visits, a bar on holding meetings in five-star hotels and instructions to departments to avoid holding seminars abroad.
“There will be a ban on holding of meetings and conferences at five-star hotels except in case of bilateral/multilateral official engagements to be held at the level of minister-in-charge or administrative secretary, with foreign governments or international bodies of which India is a member,” the ministry said.
“While officers are entitled to various classes of air travel depending on seniority, utmost economy would need to be observed while exercising the choice keeping the limitations of budget in mind. However, there would be no bookings in first class,” it added. IANS