No first-class travel, 5-star stay for babus

First class travel, 5-star hotel stay, and some other perks enjoyed by the Indian bureaucracy is now history. At least, for now.

With economic downturn and severe drought putting pressure on its finances, the government on Monday ordered a 10 per cent cut in non-plan expenditure slashing foreign and domestic travel, publicity expenses and ban on conferences in five star hotels.

The mandatory 10 per cent cut in non-plan expenditure will include spending on publications, professional services, advertising and publicity, office expenses, petrol, oil, lubricants except for security related requirements and other administrative expenses.

The order issued by the Department of Expenditure in the Finance Ministry will come into immediate effect, saying there was further need for economy and rationalisation of expenditure in view of the current fiscal situation and that arising out of insufficient rains in large parts of the country and consequent pressure on government resources.

The remaining portions of non-plan expenditure, excluding interest payments, repayment of debt, defence capital, salaries, pension and the Finance Commission's grants to states, will be subjected to a mandatory 5 per cent cut.

No reappropriation of funds to augment non-plan heads of expenditure shall be allowed during the current financial year, the Department of Expenditure order said.

The order, however, does not give an indication of how much the government aimed to save by these measures.

The economy measures will come into effect immediately.

Under the economy measures, there will be a complete ban on holding of meetings and conferences in five star hotels, and a 10 per cent cut in expenses on holding of seminars, conferences, workshops and staging them abroad except in case of exhibitions for trade promotions.

Under domestic and foreign travel, no travel on government account by air will take place in first class and that all domestic travel on government account by air will be only by economy class irrespective of the entitlement.

Where travel is unavoidable, it will be ensured that officers of appropriate level dealing with the subject are sponsored instead of those at higher levels. The size of delegation and the duration of the visit will be kept to the minimum.

Proposals for participation in study tours, workshops, conferences, seminars, presentation of papers abroad at government cost will not be entertained except those that are fully funded by sponsoring agencies, according to the order.

Besides, purchase of vehicles will not be permitted, except for operational requirements of the defence forces, central paramilitary forces and security related organisations.

Austerity instructions like those on use of telephones and use of information technology, issued by the Finance Ministry earlier will continue to be applicable.