The bureaucrats in the Indian government will have to forego a slice of luxury after Prime Minister Narendra Modi has ordered that they are to forego flying first class. They have also been instructed by the PM to begin paying for the air tickets of their spouses as the PM attempts to keep up his promise of cutting down the fiscal deficit to a seven-year low.
The ban on the bureaucrats’ first class flying, which may save up to Rs.2,00,000 (US$3000) during long-haul flights, is part of the austerity drive that has been launched by the PM on Thursday in an effort at cutting down discretionary expenditure by up to 10 percent during the fiscal till March 2015.
The small-bore measures taken up by the PM is at attempt at trimming down the bloated deficit in the country, and will be in line with the frugal image that has been encouraged by the Prime Minister since he took charge in May this year.
The Ministry of Finance has said in a directive that there is a continuous need for rationalising all expenditure and in optimum utilization of all available resources.
Also, the ministry has barred any meetings in five-star hotels, and also the purchase of cars for the use of government officials. It has also put an end to the creation of any new posts in the central departments.
However, there will be no change in the defence budget, interest and debt payment, salaries and pensions.
The Finance Ministry has said that these measures have been put in for the promotion of fiscal discipline while ensuring that there is restriction in the government’s operational efficiency.
India has been facing its longest economy slump since 1980s, which has caused slashed in tax receipts, forcing the national capital to cut down on public spending by almost $33 billion over the past two years in order to deliver on the deficit goal, and for retaining the country’s investment-grade credit rating.
During the maiden Budget that had been presented by the Modi government in July this year, it had vowed to pull the country’s fiscal deficit down to a seven-year low (4.1 percent of the the GDP) during the fiscal year till March 2015.
The government has also gained confidence if meeting its difficult target without further cuts in spending after global oil prices have slid by 25 percent since June.
News Source: The Republic News Network
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