Department of Expenditure issues guidelines on austerity measures
Posts that have remained vacant for more than a year are not to be revived – Austerity Instructions
No.7(1)/E.Coord./2014
Government of India
Ministry of Finance Department of Expenditure
Government of India
Ministry of Finance Department of Expenditure
North Block,
New Delhi, 29th October, 2014
OFFICE MEMORANDUM
Subject: Expenditure Management – Economy Measures and Rationalisation of Expenditure.
Ministry of Finance, Department of Expenditure has been ‘” issuing austerity instructions from time to time with a view to containing non-developmental expenditure and releasing of additional resources for priority schemes. The last set of instructions was issued on is” September 2013 after passing of the Union Budget. Such 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 continue to rationalise expenditure and optimize available resources. With this objective, the following measures for fiscal prudence and economy will come into immediate effect:-
2.1 Cut in Non-Plan expenditure:
For the year 2014-15, every Ministry / Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and Finance Commission grants to the States. No re-appropriation of funds to augment the Non-Plan heads of expenditure on which cuts have been imposed shall be allowed during the current fiscal year.
2.2 Seminars and Conferences:
(i) Utmost economy shall be observed in organizing conferences/ Seminars/workshops. Only such conferences, workshops, seminars, etc. which are absolutely essential, should be held wherein also a 10% cut on budgetary allocations (whether Plan or Non-Plan) shall be effected.
(ii) Holding of exhibitions/fairs/seminars/conferences abroad is strongly discouraged except in the case of exhibitions for trade promotion.
(iii) There will be a ban on holding of meetings and conferences at five star hotels except in case of bilateral/multilateral official engagements to be held at the level of Minister-in-Charge or Administrative Secretary, with foreign Governments or international bodies of which India is a Member. The Administrative Secretaries are advised to exercise utmost discretion in holding such meetings in 5-Star hotels keeping in mind the need to observe utmost economy in expenditure.
2.3 Purchase of vehicles:
Purchase of new vehicles to meet the operational requirement of Defence Forces, Central Paramilitary Forces & security related organizations are permitted. Ban on purchase of other vehicles (including staff cars) will continue except against condemnation.

2.4 Domestic and International Travel:

2.4 Domestic and International Travel:
(i) Travel expenditure {both Domestic Travel Expenses (DTE) and Foreign Travel Expenses(FTE)} should be regulated so as to ensure that each Ministry remains within the allocated budget for the same after taking into account the mandatory 10% cut under DTE/FTE (Plan as well as Non-Plan). Re-appropriation! augmentation proposals on this account would not be approved.
(ii)While officers are entitled to vanous classes of air travel depending on seniority, utmost economy would need to be observed while exercising the choice keeping the limitations of budget in mind. However, there would be no bookings in First Class.”
(iii) Facility of Video Conferencing may be used effectively. All extant instructions on foreign travel may be scrupulously followed.
(iv) In all cases of air travel the lowest air fare tickets available for entitled class are to be purchased! procured. No companion free ticket on domestic/ international travel is to be availed of.
Creation of Posts
(i) There will be a ban on creation of Plan and Non-Plan posts.
(ii) Posts that have remained vacant for more than a year are not to be revived except under very rare and unavoidable circumstances and after seeking clearance of Department of Expenditure.
3. Observance of discipline in fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at Central/ State/Local level:
3.1 Release of Grant-in-aid shall be strictly as per provisions contained in GFRs and in Department of Expenditure’s OM No.7(1)/E.Coord/2012 dated 14.ll.2012.
3.2 Ministries/Departments shall not transfer funds under any Plan schemes in relaxation of conditions attached to such transfers (such as matching funding).
3.3 The State Governments are required to furnish monthly returns of Plan expenditure – Central, Centrally Sponsored or State Plan – to respective Ministries/Departments along with a report on amounts ouistanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.
3.4 The Chief Controller of Accounts must ensure compliance with the above as part ofpre-payment scrutiny.
4. Balanced Pace of Expenditure:
4.1 As per extant instructions, not more than one-third (33%) of the Budget Estimates may be spent in the last quarter of the financial year. Besides, the stipulation that during the month of March the expenditure should be limited to 15% of the Budget Estimates is reiterated. It may be emphasized here that the restriction of 33% and 15% expenditure ceiling is to be enforced both scheme-wise as well as for the Demands for Grant as a whole, subject to RE ceilings. Ministries/ Departments which are covered by the Monthly Expenditure Plan (MEP) may ensure that the MEP is followed strictly.
The State Governments are required to furnish monthly returns of Plan expenditure – Central, Centrally Sponsored or State Plan – to respective Ministries/Departments along with a report on amounts ouistanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.

4.2 It is also considered desirable that in the last month of the year payments may be made- only for the goods and services actually procured and for reimbursement of expenditure already incurred. Hence, no amount should be released in advance (in the last month) with the exception of the following:

4.2 It is also considered desirable that in the last month of the year payments may be made- only for the goods and services actually procured and for reimbursement of expenditure already incurred. Hence, no amount should be released in advance (in the last month) with the exception of the following:
(i) Advance payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations.
(ii) Any loans or advances to Government servants etc. or private individuals as a measure of relief and rehabilitation as per service conditions or on compassionate grounds.
(iii) Any other exceptional case with the approval of the Financial Advisor. However, a list of such cases may be sent by the FA to the Department of Expenditure by so” April of the following year for information.
4.3 Rush of expenditure on procurement should be avoided during the last quarter of the fiscal year and in particular the last month of the year so as to ensure that all procedures are complied with and there is no infructuous or wasteful expenditure. FAs are advised to specially monitor this aspect during their reviews.
5. No fresh financial commitments should be made on items which are not provided for in the budget approved by the Parliament.
6. These instructions would also be applicable to autonomous bodies funded by Government of India.

7. Compliance

7. Compliance
Secretaries of the Ministries / Departments, being the Chief Accounting Authorities as per Rule 64 of GFR, shall be fully charged with the responsibility of ensuring compliance of the measures outlined above. Financial Advisors shall assist the respective Departments in securing compliance with these measures and also submit an overall report to the Minister-in-Charge and to the Ministry of Finance on a quarterly basis regarding various actions taken on these measures / guidelines.
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(Ratan P.Watal)
Secretary(Expenditure)
Secretary(Expenditure)
Source: www.finmin.nic.in
Sri Kaushal Srivastava, Member, is given additional charge as Chairman of CBEC
Shri Kaushal Srivastava,Member, CBEC is given additional charge as Chairman of CBEC till his regular appointment as the the next chief replacing the incumbent Ms. J M Shanti Sundharam who is retiring today.
Shri Kaushal Srivastava
Income Tax 2014-15 – Exemptions available to Salaried Employees for the Financial Year 2014-15 (Assessment Year 2015-16)
Finance Act 2014 has made following changes relating to determination of Income Tax payable by Salaried Employees, which provide income taxexemption varied from Rs.15,000 to Rs. 30,000 on the basis of taxable income of individual.
1. Taxable Income eligible for full exemption fromincome tax increased from Rs. 2 lakh to Rs. 2.5 lakh
2. Additional deduction of Rs. 50,000 under Section 80 C, CCC, CCD(1):
Deduction allowed under Section 80C, 80CCC, and Section 80 CCD(1) for savings/investments, premium for annuity / pension fund and employee contribution to NPS respectively has been increased to Rs. 1.5 lakh from Rs. 1 lakh (Section 80CCE Limit)
3. Income Tax exemption on Interest paid on housing loan under Section 24 of the Income TaxAct increased from Rs. 1.5 lakh to Rs. 2 lakh
In addition to above three new changes, Income Tax Rebate of Rs. 2000 for taxable income up to Rs. 5 lakh continues this year also under Section 87A of Income Tax Act
Gconnect
Shri Kaushal Srivastava, IRS – Next Chief of CBEC?
Shri Kaushal Srivastava, Officer of the Indian Customs and Central Excise Service, is tipped to be appointed as the next chief of the Central Board of Excise and Custom (CBEC), replacing incumbent Ms. J M Shanti Sundharam who retires this month.
Shri Kaushal Srivastava
Shri Kaushal Srivastava, a 1978-batch Indian Customs and Central Excise Service (IC&CES) officer, is currently serving as a Member (budget) with additional charge of computerisation and vigilance. He is the senior-most in the board after the present Chairperson J M Shanti Sundharam.
Shri Srivastava, previously held the post of Chief Commissioner, Central Excise, Delhi before joining as a member in CBEC on October 22, last year. A law graduate, Srivastava, will have a tenure of eight months as he will retire on June 30, next year, on his attaining the age of superannuation.
The CBEC has six members apart from the Chairman and is the apex body for policy and administrative issues related to indirect taxes i.e customs, central excise and service tax.
Two of the six posts of members are lying vacant in Central Board of Excise and Custom (CBEC) till date.
Tkbsen.in
Central Government Employees Federations to observe Protest Day on 5th December
50% D.A. of Central Staff should be merged with Pay and Interim Relief should be paid to all employees, pending finalisation of the 7th Central Pay Commission
NOCGE – National Organisation of Central Government Employees issued a press release, in which it has been stated that National Protest day will be observed by all Trade Union Federations on 5th December 2014 to draw the attention of Central Government to resolve the pending issues. All the affiliated unions are asked to observe this protest day on 5th December
Medicines under CGHS can be issued for up to 3 months at a time in chronic diseases and for six months in advance for those going abroad
F.No 2-2/2014/CGHS PPT/CGHS(P)
Government of India
Ministry of Health & Family Welfare
Department of Health & Family Welfare
Government of India
Ministry of Health & Family Welfare
Department of Health & Family Welfare
Nirman Bhawan, Maulana Azad Road
New Delhi 110 108
New Delhi 110 108
Dated: the 21st October , 2014
OFFICE MEMORANDUM
Sub- Issue of medicines / reimbursement of expenditure on investigations / treatment procedures / implants and other medical devices under CGHS- regarding
With reference to the above mentioned subject the undersigned is directed to draw attention to paragraph (c) and (d) of the Office Memorandum of even No dated the 25th August 2014 and to state that in response to the representations received from CGHS beneficiaries in this regard , it has now been‘decided by the competent authority to withdraw the provisions under para (c) and para (d) of the Office Memorandum No 2-2/2014/CGHS HQ/ PPT/CGHS(P) dated the 25th August , 2014 [view] and to restore the status existing prior to the issue of above stated OM dated the 25th August, 2014.
In other words medicines under CGHS can be issued for up to 3 months at a time in chronic diseases on the basis of a valid prescription and for up to 6 months for those beneficiaries who are going abroad, as was the case prior to issue of OM dated 25.8.2014.
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(RAVI KANT)
Under Secretary to Government of India
(RAVI KANT)
Under Secretary to Government of India
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