A few austerity measures have been ordered by the Union government, which includes a ban on holding meetings of the government departments at five star hotels and creation of new posts in Central government departments, at a time when government revenue growth has slowed down.
The Union Finance Ministry on September 18 ordered the austerity measures and said that such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the government.
The government’s austerity measures will include a 10 per cent cut in non-plan expenditure, mainly the recurring spending of the government. That will exclude interest payment, repayment of debt, defense budget, salaries and the pension bill, the statement said.
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