In an attempt to save resources for “priority schemes”, the Finance Ministry issued a detailed list on spending management on Friday. “In the context of the current fiscal situation and the consequent pressure on government resources, there is a need for greater economy and rationalization of non-priority spending …”, the Finance Ministry said in a statement.
The coronavirus pandemic has severely affected central government revenues. The Indian economy contracted 23.9% in the June quarter. The total deficit in GST collection estimated at ₹Rs 2.35 million lakh, Treasury Secretary Ajay Bhushan Pandey previously said. Of the total deficit, ₹Rs 97 billion is due to the GST deficit, while the remainder is due to the COVID-19 pandemic, Pandey added. India’s fiscal deficit also exceeded the full-year target in the first four months of the financial year.
“All ministries, departments, including attached offices, subordinate offices and autonomous bodies, shall observe the following instructions to reduce administrative expenses,” the ministry said.
Here are the spending guidelines:
1) No imported paper books, publications or documents will be printed / published, except when Indian missions print abroad.
2) Spending on functions such as Foundation Day celebrations, etc., should be discouraged. or it must be considered that it must necessarily be adequately reduced. In any case, trips for such functions and the supply of bags or souvenirs should be avoided.
3) All ministries or departments may conduct a review of the individual consultants appointed in their respective ministries / departments in accordance with the provisions of the GFR and reduce the number of consultants to the minimum required.
4) “The creation of new positions will be prohibited, except with the approval of the expenditure department, in ministries / attached offices, subordinate agencies, statutory bodies and autonomous bodies,” said the Ministry of Finance.
5) This prohibition will cover all creation of positions under powers that have been delegated to any organization regardless of the source of such power authority.
6) If positions have been created after 1.07.2020 with delegated powers or authority, without the approval of the expense department and have not yet been filled, such positions will not be filled. If it is considered absolutely essential to fill them out, proposals can be sent for approval by the spending department, the Finance Ministry said in a statement.
The secretaries of the ministries / departments, who are the main accounting authorities according to GFR Rule 70, will have full responsibility for ensuring compliance with the above instructions, the ministry statement mentions.
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