The Government has issued orders on expenditure management-economy measures and rationalization of expenditure. Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government. The instructions were issued in July 2011, May 2012 and September 2013. These include 10% cut in non-plan expenditure, restrictions on holding seminar and conferences, ban on purchase of vehicles except condemned vehicles, restrictions on domestic and foreign travel, ban on creation of posts, consultancy assignment, balanced pace of expenditure, observance of discipline in fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at the Central/State/Local level.

Government has introduced Medium-term Expenditure Framework Statement, setting forth a three-year rolling target for expenditure indicators with a view to undertaking a de-novo exercise for allocating resources for prioritized schemes and weeding out others that have outlived their utility. It would also encourage efficiencies in expenditure management. Government also endeavours to restrict the expenditure on Central subsidies.

The responsibility for implementing the instructions rests with the respective Ministries/Departments and the relevant data is not maintained centrally.

The details of the fiscal deficit of the Government during the last three years are as follows:

Year	Fiscal Deficit (in Rs. crore)	Fiscal Deficit (% of GDP)
2011-12	5,16,269	5.8
2012-13#	4,90,190	4.9
2013-14@	5,08,149	4.5

  #actuals  @provisional

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.

Austerity measures impose expenditure cuts and operational restrictions to strengthen fiscal discipline across government functions. Austerity measures require centralised expenditure management directives imposing restraints on non-plan spending and operational activities to promote fiscal discipline. The Government ordered reductions and operational restrictions - including a ten percent cut in non-plan expenditure, limits on seminars and conferences, prohibition on vehicle purchases except condemned replacements, constraints on travel, a ban on creation of posts and consultancy assignments, and controls on subsidies. A Medium-term Expenditure Framework Statement establishes a three-year rolling target for reallocating resources to prioritized schemes, with implementation responsibility resting with respective Ministries and Departments.