Govt launches austerity drive, bans meetings in 5-star hotels

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Launching an austerity drive to contain expenditure, the government on Thursday banned creation of new posts in its departments and holding their meetings in five-star hotels besides imposing curbs on foreign travel.

The Finance Ministry has also asked all ministries and departments to reduce non-Plan expenditure by 10 per cent in the current financial year.

"There will be a total ban on holding of meetings and conferences in five-star hotels...purchase of vehicles is banned until further orders," said an office memorandum issued by the Ministry.

On foreign travel, it said, the size of the delegation and the duration of the visit be kept to ‘absolute minimum’.

Finance Minister Pranab Mukherjee had earlier said in the Rajya Sabha that his Ministry would come out with austerity measures to check fiscal deficit.