Govt asks ministries, departments to cut 'controllable' expenditure by 20%

The move comes amid concerns that the fiscal deficit may exceed the FY22 target of 6.8% of GDP

The finance ministry has asked ministries and departments to cut "all avoidable non-scheme expenditure and aim for a 20% reduction in controllable expenditure". 

The move, which will help the government rein in overall budget spending, comes at a time when there are concerns that the fiscal deficit may exceed the FY22 target of 6.8% of GDP as the government undertakes measures to help people affected by the Coronavirus (Covid-19) pandemic. 

“The government has decided all ministries/departments should take steps to curb wasteful/avoidable expenditure and aim for a 20% reduction in controllable expenditure. All the ministries/departments are requested to take steps