The finance ministry on Friday urged all departments and ministries to reduce avoidable spending, while protecting and preserving “priority expenditure” due to pressure on government resources.
The finance ministry’s expenditure department asked all ministries to stop printing books, publications and documents on imported paper, except where printing is done abroad by Indian missions.
Expenditure on functions such as celebration of foundation day must be discouraged, it said.
All departments must review the appointment of consultants and reduce their numbers to the minimum. “Due economy may be observed while determining the fees of the consultants and care can be taken that such fees are not disproportionate to the quality and quantity of work to be carried out by the consultants,” a department of expenditure circular said.
There will be a ban on creating new posts unless approved by the department of expenditure. If any post is created after 1 September, without the department’s approval and the post is vacant, the concerned ministry will have to seek approval from the finance ministry.
“In the context of the present fiscal situation and consequent pressure on government resources, there is a need for further economy and rationalization of non-priority expenditure, while protecting and preserving priority expenditure,” it said.
The government is facing a severe revenue crunch with the economy shrinking 23.9% in the June quarter. India’s fiscal deficit breached the full-year target in the first four months of the financial year as the government stepped up spending to combat the covid-19 fallout.
