Government's austerity drive may end on March 31

New Delhi, Mar 14 (PTI) Ministers and bureaucrats, who
have been travelling 'cattle class' for the past several
months now, may cheer up as the austerity drive could end
on March 31 when the order to cut expenditure in government od
India departments expires.
The Office Memorandum issued by the Finance Ministry was
valid for the fiscal 2009-10 and would not be applicable from
April 1 unless a fresh order is issued extending it.
The memorandum was issued in September 2009 to cut
expenditure in government departments in the wake of
additional burden on the exchequer because of failure of
Monsoon coupled with the economic crisis.
The memorandum had said, "In view of the current fiscal
situation and that arising out of insufficient rain in large
parts of the country, and the consequent pressure on
Government’s resources, there is need for further economy and
rationalisation of expenditure."
The order was applicable for every government departments,
but ministers were specifically asked not to fly by business
class but by economy class only.
Some ministers had objected to this directive but had to
fall in line as Finance Minister Pranab Mukherjee insisted
that the order be followed.
Minister of State for External Affairs Shashi Tharoor
even was sarcastic when he commented on Twitter that he had to
travel 'cattle class' because of the austerity drive.
A few ministers reportedly raised the issue again at the
Cabinet meeting held to approve the General Budget and were
told to wait till March-end.

The government is in a position of re-thinking on these
austerity measures, since fiscal deficit will be reined in
because of partial roll back of stimulus and increase in
excise and customs duties on petrol and diesel.
Besides, the economy has already been showing signs of
improvement, with industrial growth posting double digit
growth for the consecutive five months. PTI IND
AHM