Some aspects of austerity drive to end on Mar 31: FM

Finance Minister Pranab Mukherjee today said some aspects of the austerity drive will come to an end on March 31, amid speculation that ministers and bureaucrats may not need to fly only economy class from next financial year.

“As it was applicable till March 31, some aspects of austerity measures will come to an end,” Mukherjee told reporters on the sidelines of AIMA function here.

Speculation was rife that compulsory economy class travel by ministers and officials would not be extended beyond March 31 since economy is now picking up.

However, the Finance Minister did not specify which aspects of austerity measures will be done away with. The office memorandum issued by the finance ministry was valid for 2009-10 and will not be applicable from April 1 unless a fresh order is issued extending it.

The memorandum was issued in September 2009 to cut expenditure in government departments. Failure of monsoon coupled with the economic crisis had put an additional burden on the exchequer.

The memorandum had said: “In view of the current financial year’s situation and that arising out of insufficient rain in large parts of the country, the consequent pressure on government’s resources need to be checked. There is need for further economy and rationalisation of expenditure.”

The order was applicable for every government department, but ministers were specifically asked not to fly business class, but economy class only.