AP Govt begins austerity drive - TeluguPeople.com News

Hyderabad, July 30 (INN): Finance Minister Yanamala Ramakrishnudu has issued orders asking all departments of Andhra Pradesh Government to cut cost wherever possible.

"The Andhra Pradesh Government has taken a decision to observe fiscal discipline and an approach of financial prudence in government departments in view of the deficit of revenues caused due to the bifurcation of the state and to meet the funds required for various development and welfare programmes," Yanamala said.

The Minister listed out 10 primary areas where the curbs on expenditure will be imposed.

"The creation of posts would be done based on absolute necessity only. No proposals for up gradation shall be entertained. All the departments are advised to critically review the necessity of continuing permitted number of Outsourcing of Staff and see if the purpose can be served by reducing the number.

In any case, no further sanction of Outsourcing of support staff shall be proposed by the departments except when absolutely necessary," the minister said.

Yanamala said that no proposal for abolition of existing revenue stream or concession of any kind which results in reduction of revenues would be entertained. The proposal which involves additional burden on exchequer will not be permitted except when absolutely necessary.

He has continued the ban on purchase of new vehicles. Further, he advised all the departments to examine the necessity of continuing the number of hired vehicles already permitted and to reduce them to the barest minimum. Further hiring of vehicles will require specific sanction of the Government.

The Minister asked all the Departments to observe economy in expenditure in holding conferences/ seminars / meetings. Holding of meetings and conferences at "Five Star Hotels" at State cost should be avoided except when absolutely necessary, he said.

Further, air travel by business class has been limited to Ministers, other dignitaries of Cabinet Rank and officials drawing salary of Rs.80,000 (fixed). All others who are eligible to travel by air shall travel in economy class only for all domestic travel. He also imposed a ban on foreign visits at the cost of State exchequer.

"The expenditure on advertisements directly by the departments shall be limited to the barest minimum and it shall be paid from the budget provision of the concerned departments. The media campaign of Flag Ship Programme Campaign is exempted," he said.

The Minister directed all the Departments of Secretariat and all Heads of Departments to follow the instructions scrupulously without any deviation. "Any failure on the part of the Departments to implement the above instructions will be viewed seriously by the Government and the budget of that department shall be curtailed to that extent.

Any relaxation of the above instructions in exceptional cases invariably requires the approval of the Chief Minister as stipulated in the A.P.Business Rules and Secretariat Office Manual in this regard," he said.

The austerity measures will also be applicable to the Panchayat Raj Institutions, all Local Bodies including Municipalities / Municipal Corporations, Public Sector Undertakings, Universities and all Grant-in-Aid Institutions.