Centre finalises austerity package for bureaucrats

NEW DELHI, FEB 28: Anxious to reduce the runaway expenditure burden, the government has finalised an austerity package for bureaucrats. T...

NEW DELHI, FEB 28: Anxious to reduce the runaway expenditure burden, the government has finalised an austerity package for bureaucrats. The package which has been worked out by the finance ministry aims at a steep increase in the licence fee being paid by officials for use of government facilities.The package basically means that all bureaucrats will have to pay a much higher fee for use of special facilities like house, healthcare, car and telephone.

Top finance ministry officials said the user charges will be increased sharply for bureaucrats and will be implemented soon. The revenue implications or the savings from the austerity package are still being worked out. quot;The savings may not be huge but it will send the right signals that the government means business,quot; the officials said. For example, all senior bureaucrats now pay a licence fee of Rs 450 for use of government cars. This may go up by two and a half times. Similarly, for houses, the increased charges will be paid directly to the CPWD which willuse the money for maintenance.

The officials said the austerity drive may face some opposition from junior level officials. So, to begin with, the package will be made mandatory for senior government officials only. Later depending on the response, it will trickle down to the junior level. To ensure positive response, care would be taken to see that the increased charges are not taxable.

The government has already issued orders to all ministries to ensure that telephones of officials who are not entitled to such facility are disconnected immediately.

On the move for downsizing the government, the officials said the finance ministry has decided to merge the post of special secretary external finance with that of special secretary banking. The post of special secretary external finance has been lying vacant after Inderjit Khanna was made enforcement director.

The government is also seriously looking at merger and rationalisation of central government departments. Posts like directorate general offoreign trade have lost their relevance and may be axed soon to reduce the size of the government, the officials felt.

quot;This is just the tip of the iceberg. Many more such decisions would follow,quot; the officials said referring to the decision to set up an expenditure reforms commission.