Total Ban on Creation of Plan and Non-Plan posts -Finance Ministry

There will be a ban on holding of meetings and conferences at five star hotels [ Department of Expenditure OM No.7(2)IE.Coord/2013 Dated 18th September, 2013 ]

Expenditure Management – Economy Measures and Rationalization of Expenditure.

Ministry of Finance, Department of Expenditure has been issuing austerity instructions from time to time with a view to containing non-  developmental expenditure and releasing additional resources for priority schemes. The last set of instructions was issued on 31st  May 2012, 1st November 2012 and 14th November 2012. Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government. In the context of the current fiscal situation, there is a need to continue to rationalize expenditure and optimize available resources. With this objective, the following measures for fiscal prudence and economy will come into immediate effect

1 Cut in Non-Plan expenditure:
For the year 2013-2014, every Ministry/Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and the Finance Commission grants to the States. No re-appropriation of funds to augment the Non-Plan heads of expenditure on which cuts have been imposed, shall be allowed during the current fiscal year.

2.2 Seminars and Conferences:
(i) Utmost economy shall be observed in organizing conferences/ Seminars/workshops. Only such conferences, workshops, seminars, etc. which are absolutely essential, should be held wherein also a 10% cut on budgetary allocations shall be effected.

(ii) Holding of exhibitions/seminars/conferences abroad is strongly discouraged except in the case of exhibitions for trade promotion.

(iii) There will be a ban on holding of meetings and conferences at five star hotels.

2.3 Purchase of vehicles:

Purchase of vehicles is banned until further orders, except against condemned vehicles.

2.4 Domestic and Foreign Travel:

(i) All officers are to travel in economy class only for domestic travel, except officers in the Apex Scale who may travel in executive class. Officers may travel by entitled class for international travel, however officers in Apex scale may travel only by business class. In all cases of air travel, only the lowest fare air tickets of the entitled class are to be purchased/ procured. No companion free ticket on domestic/international travel is to be availed of. The existing instructions regarding travel on Leave Travel Concession (LTC) would continue.

(ii) It would be the responsibility of the Secretary of each Ministry/ Department to ensure that foreign travel is restricted to most necessary and unavoidable official engagements based on functional necessity, and that extant instructions are strictly followed.

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

(iv) 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.

(v) Travel expenditure (including FTE) should be so regulated as to ensure that each Ministry remains within the allocated budget for the same. Re- appropriation proposals on this account would not be approved.
2.5 Creation of Posts:

(1) There will be a total ban on creation of Plan and Non-Plan posts.

(ii) Posts that have remained vacant for more than a year are not to be revived except under very rare and unavoidable circumstances and after seeking clearance of Department of Expenditure.

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