New Delhi:
The government has announced a series of austerity steps, including a 10 per cent cut in non-plan expenditure for 2012/13, in a bid to contain its ballooning fiscal deficit. India's non-plan expenditure for 2012/13 is estimated at Rs 97,000 cr.
Here are measures that could please investors
Every ministry/department will mandatorily cut non-plan expenditure by 10 per cent, excluding interest payment, repayment of debt, defence capital, salaries and pension.
There will be discipline in fiscal transfers to states, PSUs and autonomous bodies at Central/state/local level. Entities which fail to furnish a utilization certificate for the grants used will not be released funds without approval from the finance ministry.
Not more than 33 per cent of Budget estimates may be spent in the last quarter of the financial year. Also, ministries/departments that are covered by monthly expenditure plans must ensure that these plans are followed strictly. In the last month of the year, payments must be made only for the goods and services actually procured. Therefore, there will be no advance payments.
No fresh financial commitments will be made on items that are not provided for in the Budget approved by Parliament.
Foreign visits will be regulated to as to ensure that each ministry remains within the allocated budget (after the 10 per cent cut) for the same.
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