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This is an archive article published on September 20, 2004

Austerity drive to meet CMP cost

Days after the Planning Commission reminded the Government that fulfilling UPA promises is going to be an expensive affair, the babus are be...

Days after the Planning Commission reminded the Government that fulfilling UPA promises is going to be an expensive affair, the babus are being told they will have to help out by cutting down costs.

short article insert The Centre’s Committee of Secretaries (CoS) met last Tuesday to finalise a 25-point ‘‘austerity’’ drive by the Government to save funds for priority schemes of the National Common Minimum Programme (NCMP). At the same time, Cabinet Secretary B K Chaturvedi let it be known that ‘‘it should not be at the cost of overall efficiency.’’

Austerity measures discussed by the CoS include 10 per cent reduction in staff, another 10 per cent cut in non-plan salary expenditure to save Rs 1,588 crore a year, reduction of PAs to ministers and a blanket ban on officials’ trips abroad, except by those in the rank of additional secretary and above.

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A 10 per cent cut in expenditure incurred on travels by officials alone would save the Government Rs 133 crore a year. A 5 per cent slash in grants to autonomous bodies is expected to save another Rs 330 crore. Sources said it was also decided that government expenditure on games and domestic and international seminars should be minimal.

Stoppage of misuse of staff cars, cutting down petrol consumption and pooling of cars by officials were other measures decided at the meeting. In fact, there was even talk that if officials used government vehicles beyond the ‘‘allowed mileage’’ every month, they would have to pay double of what is currently charged from them.

Cabinet Secretary Chaturvedi, who chaired the meeting, cautioned that austerity measures should not in any way stifle the system or restrict the government’s operational efficiency.

 
What’s coming their way
 
Chatruvedi

10 pc reduction in staff
10 pc cut in non-plan salary expenditure
Reduction in number of PAs to ministers
Ban on officials’ trips abroad, except by addl secys and above
5 pc slash in grants to autonomous bodies
Check on use of official vehicle

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The austerity drive is meant to send the right signal of fiscal discipline but not at the cost of government functioning.

Finance Ministry officials present at the meeting felt that the whole exercise was aimed at cutting down non-developmental expenditure and reduce the deficit to release resources for development plans in the National Common Mininum Programme.

There was also a suggestion that discounts and incentives offered by Air India and Indian Airlines to optimise occupancy in flights could also be extended to those on official trips, subject to availability of seats.

Finance and Civil Aviation ministries would sit together to work out discounted fares for official travel.

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The meeting was attended by eight secretaries representing the Ministries of Finance, Expenditure and Economic Affairs, Home, Heavy Industries, Civil Aviation, External Affairs, Commerce and Planning Commission.

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