FinMin asks depts to cut expenses in Budget plans for FY11

Carring forward its austerity campaign, the Finance Ministry has asked various departments to scrap or downsize expenses on insignificant activities by up to 10 per cent when they submit proposals for Budget 2010-11.

The Finance Ministry, in the Budget Circular for 2010-11 has said, "The estimates (RE 2009-10) must conform to... instructions, which stipulate a 10 per cent and five per cent cut in non-plan, non-salary expenditure and other economy measures."

For the next fiscal, the circular added, "It is necessary to review the existing expenditure budget... To priorities the activities and schemes, both on the plan and non-plan side and identify those activities and schemes, which can be eliminated or reduced in size or merged with any other scheme."

As part of its economic drive, the Finance Ministry, earlier in the month, advised ministries and departments to cut by 10 per cent expenditure on travel, seminars, exhibitions and other office expenses. In case of other non- plan expenditure, the they were asked to reduce expenses by 5 per cent.

Following the government instructions on austerity, several ministers, including Finance Minister Pranab Mukherjee, have started flying economy class.