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Finmin’s diktat: Cut and save

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    In the instructions sent out, the finance ministry said that “ministries and departments have also been advised to take advantage of the increasing competition in air travel schemes offering discounts to contain expenditure on air travel”. Further, advance payment to implementing/production agencies for any scheme/project/acquisition is to be limited to 10 per cent of the approved financial outlay this fiscal and that subsequent payments are to be related to deliverables/milestones.

    Where and how much

    10 per cent

    Overtime allowance, domestic and foreign travel expenses, publications, professional services (consultancy, for instance), advertising and publicity, office expenses and other administrative expenses.

    5 per cent

    All non-plan expenditure heads excluding interest payment, repayment of debt, defence capital, salaries, pensions and the finance commission grants to states.

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