Worried over high fiscal deficit, the Expenditure Department in Finance Ministry has started holding weekly review meetings to monitor expenditure and is also looking at the possibility of reducing Plan outlay.
“We are trying to reduce the number of centrally sponsored schemes (CSS) by aligning them. Already a few ministries are doing that. The Expenditure Department is holding weekly review meetings ... so that optimum utilisation (of fund) is made,” a Finance Ministry official said.
In its bid to control expenditure, the Finance Ministry last month launched austerity drive and asked all ministries and departments to reduce non—Plan expenditure by 10 per cent.
As part of the austerity drive, the government had banned creation of new posts, holding of meetings in five—star hotels and imposed curbs on foreign travel by officials.
The Finance Ministry official said, “We have gone through B.K. Chaturvedi committee report and we are considering clubbing of many centrally sponsored schemes.”
The Planning Commission has been insisting on reduction of the number of CSS as it would help in containing expenditure.
The fiscal deficit during 2011—12 shot up to 5.7 per cent of the GDP from 4.6 per cent in the previous fiscal.
The Centre is aiming to bring it down to 5.1 per cent in the current fiscal. It is targeting to cut the subsidy bill to below 2 per cent of GDP this fiscal and 1.75 per cent in the subsequent years.
At present, the total number of CSS is 147 compared to 213 in 2003—04 and 207 in 2004—05, and the Chaturvedi Committee has asked the Centre to reduce the number to 59.
Schemes like MNREGA, Sarva Shiksha Abhiyan, Indira Awaas Yojana, PMGSY, National Rural Health Mission and Jawaharlal Nehru National Urban Renewal Mission are CSS among others.
Keywords: fiscal deficit, populist schemes, finmin, centrally sponsored schemes, State expenditure, austerity measures, Chaturvedi committee
Een as the finance ministry was monitoring the expenditure, another
central organisation, the powerful Planning Commission ahs recently
come udner public criticism for spedning a huge lot lof money for its
toilets with entry restricted to the smart card owners and whose users
strictly being covered by cameras! UIf this is the way expenditure on
infrastructure projefcts are going to be monitored by the
authrotieis,s we may well have at the end of the 12th Plan a large
number of propjects which ahve overshot the cost outlay. It is time,
teh finance ministry an all the minsitries devote greater time to
project costs and actual outcomes and not on some dreary exercise on
some cost control. This task is well within the ability and powers of
the civil servants of the finance minsitry or for that matter anay
other minsitry. What happens to the financial advisers in each of the
minsitries? Are they functioning effectively?
My suggestion . . . please invstigate who authorized the Rs. 35 lakh toilet renovation. Second . . . stop obnoxious junkets such as the one planned by Aviation Minister to take delivery of the Dreamliner plane. Third . . levy addl. duty on the high end cars and high end air-conditioners.
And how much are they planning to spend on these meetings? They need to earn a lesson from Sachin Tendulkar
Rajan
For those who have knowledge about the working of the government
departments, it is another periodical return to the controlling
office.It will serve no real purpose unless the ministers themselves are
ready to observe austerity in their conduct.Gone were the days when
ministers moved not surrounded by securities.
I am sure they continue to meet and work out sincerely and produce
approaches to meet the targeted goals.
The PM takes it up and is immediately overturned by a set of interested
party persons.
Again the officials meet and make alternate plans. The cycle will go on
and on.
Weekly monitoring is merely a launchpad that Government has opt to curb the routine expenses made by politicians.But matter of fact, it is more vital to analyze how they off-set the disproportion between Fiscal deficit and the dwindling GDP.
What a Drama! Timely measures may not have led to such a miserable
condition.Reduction in CSS is not a permanent solution rather it will
adversely effects the mango people. If ministers really want to do
something, they must have to change their attitude. They must think
about the country and its people first with whose blessings they are
sitting in parliament.
I am sure that this would help in bring the fiscal deficit down to an
expected level. I think we should have done this long back, however it
is a still a good idea to implement it now, As down the lane say in next
one years time, congress would have to rethink about pro-poor policies.
This seems to be another mere lip service by the government.
If government is so concerned with austerity why it does not takes the following steps:
1) Stop/Retrieve money of multi-crore scams.
2) The ministers give away all benefits they get for doing nothing.
3) As a personal dislike why does a minister needs 20 pilot cars. Wont a Maruti Alto car suit them?
4) Why they cant bring the stashed black money back in the country? They are even not ready to disclose it.
The government is just fooling people and will continue to do so till the end of its term.
Has the ministry talked to President Pratibha Patil,Speaker Meira Kumar,Montekh Singh Alhuwalia,to begin with?
It's a prudent step curtailing the unnecessary expenditure by adopting
austerity measures and realigning the Government schemes.Apart from this
government must check the flourishing parallel economy and bring the
unaccounted money under its ambit of taxation for increasing its
revenue.
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