Reduction in Central Government non-Plan Expenditure.
G.I., M.F., O.M. No. F. 7 (18)-E. (Co-ord.)179, dated 7-9-1997
Sub: Reduction in Central Government non-Plan Expenditure.
Since April, 1979, several instructions have been issued with a view to effecting economy in the non-Plan expenditure of Government. Besides, reiterating the economy instructions issued prior to 1979 relating to non-Plan expenditure in general, creation and filling up of posts, telephone and telegraph charges, overtime allowance, etc., orders were issued on 22nd May, 1979, and 6th July, 1979, containing further instructions for economy in expenditure.
2. In order to create a proper climate of economy and austerity, it has been decided that the following further measures should be introduced all the Ministries/Departments of the Government of India including their attached and subordinate offices: –
(i) Telephones: STD facility will be completely debarred from both office and residential telephones of all officers, including the personal staff of Ministers. The withdrawal of this facility should be completed by the 30th September, 1997, and the fact reported to Ministry of Finance, through the Financial Adviser concerned.
(ii) Economy in the use of paper: Instruction§ have peen issued to all Departments in the Ministry of Finance to affect the maximum economy in the use of paper. A copy of the instructions has also been sent to all, Ministries/Departments of the Government of India with the request that they may issue similar instructions for their headquarters and field establishments vide this Ministry’s O.M. No. F.7 (15)-E. (Co-ord.) 79, dated the 18th August, 1997. It has been decided that these instructions should be adopted by all Ministries/Departments Without exceptions and instructions should be issued to subordinate formations also to adhere strictly to these instructions for achieving maximum economy in the expenditure on paper.
(iii) Creation of new posts: According to the orders of 6th July, 1979, no additional posts would be sanctioned on the non-Plan side unless they are matched by equivalent savings by surrender of other posts, except in the case of entirely new organizations, the need for which has been specifically accepted. It has now been decided that additional posts will be sanctioned only for new organizations and that in all other cases, specific Cabinet approval should be obtained, indicating corresponding savings.
iv) Transfers of Government employees: All transfers involving change in headquarters should be stayed for a period of one year except where the transfers are on account of promotion, expiry of deputation period, or very special personal reasons.
(v) Traveling Allowance: There will be a cut ‘Of 10% in the T.A. grant as also a total ban an air travel of non-entitl~d categories.
(vi) Contingencies: A cut of 150/- will be made in the current year’s budget provision for contingencies’ of all Ministries/Departments.
(vii) Overtime allowance: It has been decided that all Ministries/ Departments should reduce their expenditure an overtime to the extent of 10% of the expenditure incurred during 1978-79 in respect of non-industrial employees other than operational staff working in the various offices /organizations in the Government of India. The expenditure on overtime in the various Government offices for the remaining part of the current financial year, will be so regulated as to reflect this overall reduction of 10%.
(viii) Staff sanctioned for Centrally-sponsored Schemes: As decided by Government recently, a large number of Centrally-sponsored Schemes have been transferred to the State Sector. Following this, the requirement of posts, which were sanctioned for looking after Centrally• sponsored Schemes should be reviewed immediately and a drastic curtailment in their number effected. In several Plan Schemes, there is a large component of non-productive expenditure like cost of new buildings, additional staff, etc. The Ministries should review such items and where construction works have not already been started, they could be deferred. Appointment of fresh staff even for Plan Schemes should also be reviewed with a view to effecting the maximum economy.
(ix). Foreign Travel: A drastic reduction should be effected in the number of deputations and delegations abroad. Proposals fro study tours, seminars, conferences, exhibitions, trade fairs, cultural visits, etc., should therefore sponsored to the Screening Committee of Secretaries only if such visits are absolutely unavoidable.