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Home > News > India News > Article > Govts austerity drive may end on March 31

Govt's austerity drive may end on March 31

Updated on: 15 March,2010 09:54 AM IST  | 
Midday Correspondent |

Ministers and bureaucrats, who have been travelling 'cattle class' for the past several months, may have reason to cheer as the austerity drive could end on March 31, when the order to cut expenditure in government departments expires

Govt's austerity drive may end on March 31

Ministers and bureaucrats, who have been travelling 'cattle class' for the past several months, may have reason to cheer as the austerity drive could end on March 31, when the order to cut expenditure in government departments expires




The Office Memorandum issued by the Finance Ministry was valid for the fiscal 2009-10 and would not be applicable from April 1 unless a fresh order is issued to extend it. The memorandum was issued in September 2009 to cut expenditure in government departments in the wake of additional burden on the exchequer because of failure of the monsoon coupled with the economic crisis.



Ministers were specifically asked not to fly business class. Some ministers, including MoS for External Affairs Shashi Tharoor, had objected but had to fall in line at Finance Minister Pranab Mukherjee's insistence.

u00a0A few ministers reportedly raised the issue again at the Cabinet meeting held to approve the General Budget and were told to wait till March-end.

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