FM to review implementation of austerity measures tomorrow

NEW DELHI: Finance Minister Pranab Mukherjee has called a meeting tomorrow to review the implementation of austerity measures announced in the wake of drought and the economic slowdown that had put pressure on government finances.

The meeting will be attended by financial advisors attached to various central ministries and departments, sources said.

The Finance Ministry in September had asked various ministries and departments to cut non-plan expenditure by ten per cent.

Besides, it had asked them not to hold conferences in five star hotels.

The mandatory ten per cent cut in non-plan expenditure include spending on publications, professional services, advertising and publicity, office expenses, petrol, oil, lubricants except for security related requirements and other administrative expenses.
The remaining portions of non-plan expenditure are subjected to a five per cent cut.

However, interest payments, repayment of debt, defence capital expenditure, salaries, pension and grants to states are not part of the austerity measures.