Government bars its employees from travelling first class

NEW DELHI: Government employees can’t travel first class, the government has said, following a UPA tradition as it puts in place a mid-year austerity drive seeking a mandatory 10% cut in non-plan expenditure by ministries and departments. The finance ministry directive also bars meetings in five-star hotels and the purchase of new cars besides a freeze on new appointments.

"In the context of the current fiscal situation, there is a need to continue to rationalize expenditure and optimize available resources," a finance ministry statement said on Thursday. "Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the government." The directive came a day after expenditure secretary R P Wattal told financial advisors of various ministries and departments to remain within budget and be prudent with spending and maintain fiscal discipline. "The message is clear that funds should be prudently spent," said an official who attended the meeting. The previous UPA government put similar measures in place in 2012 and 2013 as it sought to narrow the fiscal deficit. The creation of new positions as well as car purchases are mostly banned and video conferencing should be used wherever possible. Interest and debt payments, the defence budget, salaries and pensions will not be affected by these steps, it said.

"While officers are entitled to various classes of air travel depending on seniority, utmost economy would need to be observed while exercising the choice keeping the limitations of budget in mind. However, there would no bookings in first class," it said.

The ministry said the purchase of new vehicles to meet operational requirements of the defence and paramilitary forces and security organisations are permitted but a ban on the buying of any other vehicles would continue. "In the context of the current fiscal situation, there is a need to continue to rationalise expenditure and optimise available resources," it said.