The cash-strapped government on Wednesday announced a slew of austerity measures including a ban on creation of new posts and forbidding conferences at five-star hotels.
However, many of austerity measures announced are mere repetition of previous orders.
In May 2012 finance ministry had also banned creation of new posts and holding of meetings in five-star hotels besides restricting foreign travel by officials to help the government to prop up finances.
For 2013-14, every ministry and department will have to effect a mandatory 10 per cent cut in non-plan expenditure excluding interest payment, repayment of debt, defence capital and salaries.
Purchases of new vehicles have been banned, except against condemned vehicles.
Only officers in apex scale could travel in executive class domestically. “No companion free ticket on domestic/international travel is to be availed of,” said the office memorandum issued by finance secretary R.S. Gujral.
The measures aim at restricting the fiscal deficit to the budgeted target of 4.8 per cent of GDP in 2013-14.
Proposals for participation in study tours, workshops and conference abroad at government cost will not be accepted until they are fully funded by sponsoring agencies.
Government department will have to maintain utmost economy in organising conference.
Holding of exhibitions, seminars and conference abroad will have to be discouraged except in case of exhibitions for trade promotions. Posts that have remained vacant for more than a year will not be revived except in rare circumstances.
“It is also considered desirable that in the last month of the year payments may be made only for the goods and services actually procured and for reimbursement of expenditure already incurred,” said the memorandum.
The departments have been asked that no fresh financial commitments should be made on items which are not provided in the budget approved by the Parliament.