The Finance Ministry has issued fresh guidelines several austerity measures which ban ministers from holding meetings in five-star hotels and traveling in first class of airlines. The ministry informed that the measures would include every ministry should cut non-planned expenditure by 10 percent cut and also bans from creation of a new post within the government.
In a statement, the Finance Ministry said, these measures will help in promoting fiscal discipline without the operational efficiency of the government. However, these measures would not affect interest and debt payments, salaries, pensions or defence budget.
Since taking the chair in May, Narendra Modi government has been pushing to lessen the non-planned expenditure and finally issued some guidelines in this regards. Modi also asked his ministers to refrain from buying new cars and the PMO asked ministers to approach it for any purchase above Rs 1 lakh.