Government tightens its belt
Do you still want to join the government? But remember the new austerity measures and rethink. No more meetings at five-star hotels, no more first class air travel and many more things that remind you to keep your expenditure under control.
In fact, there is even a ban on creation of new posts in the government. To promote fiscal discipline, without restricting the operational efficiency of the government, the Finance Ministry is trying out some new, impressive ways of cutting costs.
This includes a 10 per cent cut in non-plan, or “discretionary expenditure.” But interest and debt payments, the defence budget, salaries and pensions will not be affected, the statement said.
The new government has fixed a challenging fiscal deficit target of Rs. 5.31 lakh crore, or 4.1 per cent of the gross domestic product for the current fiscal year. India’s fiscal deficit touched nearly 75 per cent of the full-year target, or Rs. 3.97 lakh crore, in just the first five months of the fiscal year (April-August). The fiscal deficit, or gap between government expenditure and revenue was slated to be 4.5 per cent of GDP in 2013-14.