New Delhi: The Finance Ministry has asked
the ministries to adhere to the austerity guidelines while
seeking additional funds over and above the amount provided in
the Budget 2009-10.
All ministries, an Expenditure Department circular
said, should "strictly" follow the austerity norms while
presenting their demands for additional funds for inclusion in
the first batch of supplementary demands for grants.
Finance Minister Pranab Mukherjee will be presenting
the first batch of supplementary demands for grants during the
forthcoming Winter Session of Parliament.
Noting that ministries should try to meet their
expenditure by re-appropriation from savings, the circular
said, only those expenses which cannot be postponed would be
considered for inclusion in the supplementary demands for
As per of the austerity drive, the Finance Ministry in
its earlier circular on September 8 had ordered a 10 per cent
cut in non-plan expenditure that would cover foreign and
domestic travel and advertising, besides economy measures on
seminars and conferences.
The mandatory 10 per cent cut in non-plan expenditure will
include spending on domestic and foreign travel, publications,
professional services, advertising and publicity, office
expenses, petrol, oil, lubricants except for security related
requirements and other administrative expenses.