Follow austerity while seeking more funds; Finmin to ministries
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Last Updated: Tuesday, September 22, 2009, 22:08
  
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 grants.

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.

Bureau Report


First Published: Tuesday, September 22, 2009, 22:08


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