"The Dept. of Expenditure circular dated 04 Sept 2020 deals with internal procedure for creation of posts and does NOT in anyway affect or curtail recruitment," said the ministry in a statement.
"Normal recruitments through govt agencies like Staff Selection Commission, UPSC, Rlwy Recruitment Board, etc will continue as usual without any curbs," it said.
The expenditure department said in a memorandum Friday: "There will be a ban on creation of new posts, except with the approval of the department of expenditure, in the ministries/departments, attached offices, subordinate offices, statutory bodies and autonomous bodies."
Any posts created after July 1 without the approval of the expenditure department will remain vacant if they haven't yet been filled, the memorandum said.
The Finance Ministry’s statement follows criticism of the Friday circular. The Congress on Saturday demanded that the government withdraw the circular, and urged it to create more vacancies while filling the existing ones in the wake of the alleged rise in unemployment.