Measures for Fiscal Prudence

Government has announced measures for fiscal prudence and economy to rationalize expenditure and optimize available resources. This include 10% mandatory cut in the current financial year on non-plan expenditure excluding interest payments, repayments of debt, defence capital, salaries, pension and Finance Commission grants to States. Austerity measures, such as restrictions on holding of meetings and conferences at five star hotels, ban on creation of Plan and Non Plan posts, restriction on purchase of new vehicles, restrictions on foreign travel, observance of discipline in fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at Central/State/Local level have also been imposed.

In the General Budget 2014-15, fiscal deficit has been estimated to 4.1 per cent of GDP.

The savings likely to be accrued as a result of austerity measures are not centrally monitored and cannot be quantified.

The measures for fiscal prudence and economy are enforced with immediate effect and until further orders.

This information was given by the Minister of State of Finance, Shri Jayant Sinha in written reply to a question in Lok Sabha.