You are here: Home » Economy & Policy » News
Business Standard

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

Finance Ministry | Fiscal Deficit

BS Web Team  |  New Delhi 

Finance Ministry
Finance Ministry

The 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 may exceed the FY22 target of 6.8% of GDP as the government undertakes measures to help people affected by the (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 to curtail all avoidable non-scheme expenditure and aim for a 20% reduction in controllable expenditure, in compliance with the above decision. Expenditure in 2019-20 may be taken as the baseline for this purpose," said a directive from the finance ministry’s Department of Expenditure.

The list of heads under which expenditure will be controlled include overtime allowance, rewards, domestic travel expenses, foreign travel expenses, office expenses, rents, rates and taxes, royalty, publications, other administrative expenses, supplies and materials, cost of ration, clothing and tentage, advertising and publicity, minor works and maintenance, service or commitment charges, grants-in-aid general, contribution and other charges.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, June 12 2021. 08:39 IST