Finmin for curb in govt office expenses

The Finance ministry has issued fresh guidelines on government office expenditure to contain non-plan, non-developmental expenditure, minister of state for finance S S Palanimanickam said today.

"These measures, inter-alia, include ban on the creation of posts, reduction in number of sanctioned posts, restrictions on filling up of vacant posts, reduction in office expenses, restrictions on purchase of vehicles, restrictions on foreign travel and on entertainment/hospitality expenses, mandatory 10% cut in budgetary allocation for non-plan, non-salary expenditure," Palanimanickam said in a written reply to a question in Rajya Sabha.

To another question, Palanimanickam said at present, the liquidity availability in the economy, including the banking sector was adequate.

"This is reflected in the excess liquidity placed in reverse repo under the liquidity adjustment facility (LAF) of the Reserve Bank of India, which ensures appropriate liquidity to meet the legitimate credit needs and supports investment and export demand in the economy," Palanimanickam said.

Palanimanickam said government has changed foreign aid policy and now bilateral development assistance would be accepted from all G-8 countries, as well as from Europrean Union as against six development partners in the erstwhile policy, namely UK, US, Japan, Germany, Russian Federation and European Commission.

"Further such assistance will also be accepted from non G-8 European Union countries providing a minimum bilateral aid package of $25 million per annum to India," Palanimanickam said.