The government has announced a set of austerity measures, including an embargo on new posts, purchase of new vehicles, barring those for essential utility, and restricting air travel to economy class, in a bid to tide over the financial crisis.
The other steps include ban on conferences in hotels, putting a 10% curb on office expenses and reducing electricity use by at least 5 %.
In a seven-page circular, a copy of which is available with The Hindu, the Finance Department has restricted direct recruitment. The vacancies in technical and non-technical operational posts arising in normal course can be filled by transfer, promotion, deputation, adjustment of staff rendered surplus and leave vacancies. It has been decided to scrutinise surplus staff arising due to completion of specific projects and schemes. Often there was pressure on carrying surplus staff on the pay roll.
Priority should be to redeploy the staff in other departments, the circular said.
The department has sought to stop voucher payment for staff for routine official work. Government agencies have been advised to ban meetings and conferences in hotels.
In another significant step, the department has asked the officials to restrict air travel to economy class and the tickets should be purchased from the airline website at the lowest price.
A 10% cut has been imposed on office expenditure, including telephone charges, fuel expenses and refreshments. The government had decided to defer purchase of new vehicles against the replacement of condemned ones. However, there is no curb on utility vehicles such as ambulance and fire tenders.
It had been directed to stop outsourcing of vehicles and to park vehicles near office buildings to reduce the dead mileage to the maximum extent possible. The vehicles should not be taken to the residence of drivers under “any circumstance,” the circular said.
Expenditure on the use of electricity should be reduced by a minimum of 5% by all offices and public buildings with reference to the consumption during the corresponding month of the previous year through efficient utilisation. The department has put curbs on ex post facto approval thereby restricting executing works and schemes not budgeted for the financial year. Any award of work, schemes and procurement of goods and services shall have to be done with administrative approval based on funds availability, the circular said.
No fresh commitments
The circular said fresh commitments should not be made on items which were not provided in the approved budget.
Similarly, public sector undertakings (PSUs), corporations, boards and other autonomous bodies should not create any contingent liability on the government through loans obtained by them directly from banks.
The public works department had been directed to refer new projects to the Finance Department. The PSUs, boards and corporations should not engage staff without the approval of the government. The entities should strictly align their financial rules and practices in conformity with the rules and practices existing in the government, the circular said.
Commissioner-cum-secretary (Finance) V. Candavelou said in view of the current “tight” financial scenario it was necessary to follow expenditure control to ensure financial stability.
