Economy measures to curb government expenditures

Expenditure Management — Further Economy Measures

In the context of the present fiscal situation and the consequent pressure on Government resources, there is a need for further economy and rationalization of non-priority expenditure, while protecting and preserving priority expenditure.

With a view to improving the quality of public expenditure, containing non-developmental expenditure and ensuring availability of adequate resources for meeting the needs of critical priority schemes, Ministry of Finance, has from time to time issued instructions on Expenditure Management.

With this objective, the following economy instructions will come into force with immediate effect.

• Ban on creation of new posts
• Ban on celebrations of Foundation Day & official functions
• Ban on printing of Books, Calendars, Document
• Ban on travel for function, mementoes
• Reduce the number of Consultants

Download the Order for Economy measures

1. CURTAIL ADMINISTRATIVE EXPENDITURE:Costing Cutting

All Ministries/Departments including Attached Offices/Subordinate Offices and Autonomous Bodies shall observe the following instructions for curtailing Administrative Expenditure.

• No printing/publishing of books, publications, documents, etc. will be done on imported paper, except where printing is done abroad by Indian Missions, etc.
  • Expenditure on functions such as celebrations of Foundation Day, etc. should be discouraged or if felt necessary be appropriately curtailed. In any case, travel for such functions and provision of bags or mementoes should be avoided.
  • Consultancy Assignments – All Ministries/Departments may carry out a review of the individual Consultants appointed in their respective Ministries/Departments in consonance with the provisions of GFR and reduce the number of Consultants to the minimum requirement. Due economy may be observed while determining the fees of the Consultants and care may be taken that such fees are not disproportionate to the quality and quantity of work to be carried out by the Consultants.

2. BAN CREATION OF POSTS

• There will be a ban on creation of new posts, except with the approval of Department of Expenditure, in Ministries/Departments, Attached Offices, Subordinate Offices, Statutory Bodies and Autonomous Bodies.
• This ban will cover all creation of posts under powers which have been delegated to any organization regardless of the source of such authority or power.
• If any posts have been created after 01.07.2020 under delegated powers or authority, without approval of Department of Expenditure and have not yet been filled, then such posts shall not be filled. If it is deemed absolutely essential to fill them, proposals may be sent for approval of Department of Expenditure.

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