Wasteful Expenses to Cut by 20% | 18 Jan 2020

Why in News

The Union Government has decided to reduce wasteful expenditure on items such as travel, food and conferences by 20%.

Key Points

  • The decision is to avoid fiscal slippage by containing non-development expenditure and controlling fiscal deficit well within the limit of budgeted target of 3.3% during the FY 2019-20.
  • This is not the first time that the government has resorted to austerity measures for rationalisation of expenditure. In October 2014, the Government had asked to cut non-Plan expenditure by 10%.
  • Such austerity measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government.
  • In the context of the current fiscal situation, there is a need to rationalise expenditure and optimise available resources.

Source: IE