Finance Ministry’s New Guidelines To Curb The Expenses Of Central Government

Finance Ministry’s Department of Expenditure has ordered all central government bodies to avoid generating new posts, and curb expenses on celebrations and printing to cut costs.

The department has also urged all union ministries and departments to review consultants affiliated to them and exercise caution while determining their fees.

“In the context of the present financial situation and the consequent pressure on government resources, there is a need for further economy and rationalization of non-priority expenditure, while protecting and preserving priority expenditure,” the Department of Expenditure stated in an office memorandum on Friday.

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A new ban has been imposed on creation of new posts in all the ministries, departments, their linked or affiliated offices, and independent bodies without the approval of the Department of Expenditure. The positions that have already been created will remain unoccupied. If it is necessary to fill then, proposals for the same have to be sent to the Department of Expenditure.

To lower the administrative expense, the Department of Expenditure has asked all ministries, departments, their subordinate offices, and autonomous bodies to avoid printing or publishing books, publications, documents, etc. on imported paper. Only Indian deputations overseas have been exempted from these guidelines.

All central ministries and departments have been urged to carry out a review of the private consultants serving them and lessen their number to the minimum requirement. “Due economy may be observed while determining the fees of 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,” Department of Expenditure added.