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LATEST NEWS UPDATES | Govt set for 20% cut in wasteful expenses -Harikishan Sharma

Govt set for 20% cut in wasteful expenses -Harikishan Sharma

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published Published on Jan 12, 2020   modified Modified on Jan 12, 2020
-The Indian Express

“All ministries have been directed to reduce wasteful expenditure on travel, food and conferences by 20 percent. The CCIG has asked the Department of Expenditure, Ministry of Finance, to take necessary action in this regard,” a source told The Sunday Express.

In an austerity move, the Union government has decided to reduce wasteful expenditure on items such as travel and food by 20 percent, it is learnt.

A decision of this effect was taken at a recent meeting of the Cabinet Committee on Investment and Growth (CCIG), chaired by Prime Minister Narendra Modi, according to sources.

“All ministries have been directed to reduce wasteful expenditure on travel, food and conferences by 20 percent. The CCIG has asked the Department of Expenditure, Ministry of Finance, to take necessary action in this regard,” a source told The Sunday Express.

The minutes of the CCIG meeting were circulated last week to the ministries concerned for follow-up action, the source said.

The move is being seen as the Centre’s attempt to avoid fiscal slippage by containing non-development expenditure and controlling fiscal deficit well within the limit of budgeted target of 3.3 percent during 2019-20 financial year. With the GDP growth expected to slow down to an 11-year low of 5 per cent during the ongoing fiscal, the task of maintaining fiscal discipline becomes more challenging.

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The Indian Express, 12 January, 2020, https://indianexpress.com/article/india/govt-set-for-20-per-cent-cut-in-wasteful-expenses-6212094/


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