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Andhra Pradesh plans to impose austerity measures

Restrictions likely on five-star hotel meetings, foreign trips

Hyderabad: Andhra Pradesh government has decided to impose restrictions on non-plan expenditure and junkets, in a bid to reduce the deficit in Budget.

AP finance minister Yanamala Ramakrishnudu has already signed the file on austerity measures and send it to Chief Minister N. Chandrababu Naidu for his approval. Mr Ramakrishnudu said the measures will come into force very soon.

Once the economic measures come into force, only those ministers and officials, drawing a salary of Rs 80,000 will be permitted to travel by air as per their eligibility. All other officials, eligible to travel by air, would be allowed to do so in economy class only for all domestic trips.

A ban would be placed on holding meetings and conferences at five star hotels using government money. No foreign visits at the cost of state exchequer will be allowed and official tours, in or outside the jurisdiction, shall be limited to the barest minimum. Under no circumstance, additional provisions would be made under travelling allowance.

The government would view every case seriously and ratification will not be accorded on any expenditure incurred on any item beyond the powers of the concerned authority. All the departments of Secretariat and all heads of departments would be required to follow government instructions scrupulously without any deviation.

The diktats would also be applicable to the panchayati raj institutions, municipal corporations, public sector undertakings, universities and all grant-in aid institutions. The government will not entertain any proposal for abolition of existing revenue or concessions, which results in reduction of revenues.

The government would not relax any rules, which involve additional burden on the exchequer. The government will not entertain the proposals for additional allocation of Budget under revenue head.

The finance minister stated that in order to ensure that adequate funds are available for undertaking priority developmental programmes, it is necessary to promote fiscal discipline and financial prudence in government departments.

( Source : dc correspondent )
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