On September 4, 2020 the government of India came out with a fresh set of austerity measures, urging ministries and departments to curb non-priority expenditure at a time when the Centre is faced with a tough fiscal situation.
As per the order from the department of expenditure (DoE), in the context of the present fiscal situation and the consequent pressure on government resources, there is a need for further economy and rationalisation of non-priority expenditure, while protecting and preserving priority expenditure.
Suggested Measures Some suggested measures are as follows:
- All ministries and departments have been told to stop printing or publishing of books, publications or documents on imported paper, except where printing is done overseas for Indian missions.
- They have also been told to discourage functions to celebrate foundation day and others and to avoid travel for such functions and provisions for bags and mementos.
- Ministries and departments have also been told to undertake a review of individual consultants and reduce them to the minimum requirement.
- The order said due economy may be observed while determining the fees of the consultants and care may be taken that such fees are not disproportionate to the quality and quantity of work to be carried out by them.
Ban on Creation of New Posts The order imposes a ban on creation of new posts in ministries and departments, except with approval of the department of expenditure. The ban will cover creation of posts under powers, which have been relegated to any organisation, regardless of the source of such authority or power. If any posts have been created after July 1, 2020 under delegated power or authority, without approval from the DoE and have not yet been filled, then such posts shall not be filled.
The measures are taken due to different reasons like covid-19 impact and a heavy stress on economy, and the emerging border challenges. The measures will also support India’s promise for Atmanirbhar Bharat.