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Wednesday, September 23, 2020

Finance Ministry cuts non-priority expenditure, new posts amid slump in revenues

The government has also banned expenditure on printing of books and documents on imported paper and asked departments to reduce the number of consultants appointed by them for various purposes.

By: ENS Economic Bureau | New Delhi | September 5, 2020 12:55:02 am
Finance Minister Nirmala Sitharaman, coronavirus pandemic, economic package, reform proposals, indina express newsThe Department of Expenditure said in an office order said there will be a ban on creating new posts, except with approval of the Expenditure Department. (Photo: PTI)

To prioritise government expenditure amid falling revenues, the Finance Ministry on Friday announced measures to further curtail non-development expenditure and banned creation of new posts in ministries and departments. The government has also banned expenditure on printing of books and documents on imported paper and asked departments to reduce the number of consultants appointed by them for various purposes.

“ln the context of the present fiscal situation and the consequent pressure on government resources there is a need for further economy and rationalisation of non-priority expenditure, while protecting and preserving priority expenditure,” the Department of Expenditure said in an office order.

With regard to administrative expenditure, the Department of Expenditure, under the Finance Ministry, said no printing or publishing of books, publications, documents will be done on imported paper, except where printing is done abroad by Indian missions.

“Expenditures 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 mementos should be avoided,” the ministry said. It asked all the ministries /departments to carry out a review of the individual consultants appointed by them in consonance with the provisions of General Financial Rules and reduce number of consultants to the minimum requirement.

It said there will be a ban on creating new posts, except with approval of the Expenditure Department. “If any post has been created after July 1, 2020, under delegated powers or authority, without approval of Expenditure Department and have not yet been filled, then shall posts shall not be filled. If it is deemed absolutely essential to fill them, proposals may be sent for approval of Department of Expenditure,” it said.

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