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| FinMin advises ministries to cut expenses by 10% |
| Press Trust of India / New Delhi Nov 20, 2009, 21:54 IST |
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Facing revenue shortages, the Finance Ministry has advised all the ministries to cut expenditure on domestic and foreign travel and advertising by 10 per cent, the Lok Sabha was informed today.
"The Ministry has advised all (other Ministries and Departments) to effect a mandatory 10 per cent cut in non-plan expenditure on domestic and foreign travel expenses, publications, professional services, advertising and office expenses for the year 2009-10," Minister of State for Finance Namo Narain Meena said in a written reply.
Moreover, the government will also effect five per cent cut in the remaining portion of non-plan expenditure, he said.
Indirect tax collection of the government has shrunk by over 21 per cent to Rs 1.26 lakh crore in the first seven months of this fiscal, against Rs 1.61 lakh crore a year ago due to stimulus packages and economic slowdown.
All the three components of indirect tax -— excise, customs and service tax —- have posted negative growth in collections.
Customs declined the most, by 31.8 per cent at Rs 45,412 crore indicating lower imports because of economic slowdown and decline in petroleum prices.
Excise duty collection was also down by 18.8 per cent at Rs 52,566 crore, a finance ministry statement said.
The pace of slowdown could be gauged from the fact that services sector, which is a significant contributer to the Indian economy, fetched 5.4 per cent lower revenue at Rs 28.926 crore.
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