Govt tweaks austerity measures for practicality, expects better abidance

GANGTOK, 08 Aug: A fresh circular has been issued by the State Government to all departments to curtail wasteful expenditure and urging them to undertake austerity measures. While the government had approved various austerity measures some years back itself, it seems that these were not taken very seriously by departments. Hence, a few weeks back, the Cabinet had again agreed on undertaking austerity measures in order to reduce ‘wasteful expenditure’ and following this, a circular was issued to all departments.
The new urge towards undertaking a more forceful as well as practical approach towards austerity is also due to the massive monetary loss that the state exchequer had to bear due to the earthquake of 18 September, 2011. The revenue of the government was badly impacted, inform officials, and this time the austerity measures also include constant monitoring of revenue realization. Even though there has been assistance from the central government, the revenue shortfall is for the state to make up. Officials remain tight lipped on the scale of revenue shortfall though.
As for the austerity measures, this time, the difference, as officials inform, is that the austerity measures highlighted in the circular are more ‘practical’ and rational as they do not impose a ‘blanket ban’ or direction to adhere to impractical stipulations, but provide for divergence in case of emergencies and urgent requirements.
As such, officials inform, earlier there had been a blanket ban on the purchase of new vehicles and also on the creation of new posts in the departments.  As it turned out, these directives did not prove effective despite a Committee set up on Austerity measures headed by the Chief Secretary.
It is expected that this time the government has put more teeth into its drive to undertake such measures and has emphasized the same as on a need basis. As such, all foreign tours on government expenditure have been banned, it is informed, unless sponsored by the Centre or a private agency. The government has also realized that there cannot be a complete ban on the purchase of new vehicles therefore this too has been made flexible as on a need basis.
The same with the creation of new posts in the various departments which cannot be prohibited totally, say officials. As such all such proposals will be first vetted by the committee on austerity measures which will examine the requirement put up by the particular department. This committee also includes the Additional Chief Secretary and the Finance Secretary.
Other stipulations aimed at curtailing wasteful expenditure include a standing order on the ban of holding government functions in luxury hotels. The purchase of new furniture for government offices has also been adjusted from a blanket ban to need basis.
The impact of the new approach towards the curtailing of wasteful expenditure will be known only towards the year end and more so in terms of disciplined functioning of the government rather than in monetary terms.