1.11.14

Austerity measures announced

Unveiling an austerity drive to trim fiscal deficit, the government has banned first class air travel for bureaucrats, meetings in five-star hotels and purchase of cars while freezing new appointments.
The measures, aimed at cutting non-plan spending by 10 per cent, include a ban on filling of vacant posts to reduce fiscal deficit to a seven-year low of 4.1 per cent of GDP. “Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the government,“ a finance ministry statement said.
Creation of new positions as well as car purchases are mostly banned and video conferencing should be used wherever possible. Interest and debt payments, the defence budget, salaries and pensions will not be affected by these steps, it said.
With an aim to restrict fiscal deficit, the Finance 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 no bookings in the first class.“
The Finance Ministry said purchase of new vehicles to meet operational requirements of defence and paramilitary forces and security organisations are permitted. Similar measures had been introduced by the UPA government over the past two years.

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