Press Information Bureau
Government of India
Ministry of Finance

15-May-2012 16:44 IST

Measures for Cutting Non-Plan Expenditure

The details of non-plan expenditure during the last three years i.e. 2009-2010, 2010-11, 2011-12 (RE) and 2012-2013 (BE) are as under:

(Rs. In crore)

Therefore, while the non plan expenditure has gone up in absolute terms over last three years, however, as a percentage of GDP, it has shown declining trend.

Government is committed to carry on the process of fiscal consolidation vigorously.  In order to adhere to the fiscal targets set in Budget and for better expenditure management, Government has issued orders in May and July, 2011 for enforcing 10% cut on budgetary allocations for holding seminars, workshops and conferences, ban on holding meetings and conferences at 5 star hotels, ban on purchase of vehicles except for the operational requirements of Defence Forces, Central Paramilitary Forces and security related organizations, restrictions on foreign travel and adhering to the quarterly ceilings under foreign travel expenses, ban on creation of Plan and Non Plan posts, except for new organizations which are set up based on approved schemes, strict discipline in employing consultancy assignments.  Fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at Central/ State/ Local level are also required to be monitored strictly

for default in furnishing utilization certificates, fulfillment of conditionalities attached to releases of Plan funds in case of matching funds and adjustment of unspent balances in the current releases.

Steps have been taken for greater fiscal discipline and may not be quantifiable.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

*****

DSM/SS/SL