CASH-STRAPPED GOVERNMENT CUTS DOWN ON NON-ESSENTIAL EXPENDITURE

NEW DELHI: The government has decided to cut non-essential expenditure such as that on celebrations, creation of new posts and appointment of consultants to save scarce resources for priority sectors, with the fiscal deficit having crossed 103% of the budgeted estimated for 2020-21.

The department of expenditure (DoE) issued an order on Friday asking all government departments and autonomous bodies to cut administrative expenses. This is close on the heels of a similar order issued on Wednesday that banned printing of diaries, calendars and coffee table books in physical form.

“ln 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,” the order by DoE, an arm of the Union finance ministry, said.

The Centre has resorted to cutting costs after the economy saw a 23.9% contraction in the first quarter of 2020-21, mainly attributable to a 68-day nationwide lockdown to check the spread of the Covid-19 pandemic.

The order prohibits printing of books, publications and documents on imported paper, except for printing done abroad by Indian missions. “Expenditure on functions such as celebrations of Foundation Day, etc, should be discouraged or if felt necessary be appropriately curtailed,” the order said. Besides, it directed departments to avoid travel costs and distribution of bags or mementoes. It asked ministries to review individual consultants working there and cut their numbers to the minimum. The government also banned creation of new posts, except with approval by the DoE.