The Hindu Business Line : Umpteenth austerity drive

There is nothing so predictable or so widely ignored as the austerity drives of the Government. They come with such a monotonous regularity that observers of the goings-on in the Government have simply lost count of them.

The one launched on September 7 to arrest a downslide in government finances runs true to form. In many respects, it is a repetition of things that have been the staple of such drives.

Even the preamble (“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”) bears a suspicious resemblance to the language in which such preambles have been eternally worded.

Familiar measures

The familiar prescriptions are all there. To wit: 10 per cent cut in non-plan expenditure on domestic and foreign travel, advertising and publicity, organising business and seminar as well as for office expenses; ban on holding meetings and conferences at five-star hotels; air travel only in economy class within India and in business class while travelling abroad even by those entitled to travel first; the size of delegation and the duration of visits to be kept to the absolute minimum; only officials dealing with the subject at the appropriate level, and not those of higher grades, to undertake visits; and Ministers to curtail foreign travel.

In addition, in an attempt to break new ground, the Government has taken cognisance of officials putting to personal use the mileage points accruing to their credit from air travel and laid down that all mileage points earned by Government employees on tickets purchased for official travel should be utilised by the Department concerned for other official travel by their officers.

Yet another new feature is the inclusion by the Congress President, Ms Sonia Gandhi, of all party MPs, State legislators, Ministers and other salaried post holders of the party within the purview of the drive “to reflect concern and sensitivity towards people affected by drought.”

She has asked them to accept a 20 per cent cut in their monthly salary for one year beginning September 1 and avoid giving any impression of ostentation and self-indulgence.

Business as usual

As usual, the Government spokespersons are making out that these measures by themselves will contain the fiscal deficit and reduce the quantum of market borrowing.

First of all, if past experience is any guide, there is no guarantee of all these restrictions being adhered to in letter and spirit.

What one usually finds is that there is an appearance of compliance in the first few weeks of issue of such directives, but thereafter, everyone relaxes and it becomes business as usual.

Keeping this in view, the Finance Minister, Mr Pranab Mukherjee, will do well to establish a cell in his Ministry to monitor on a sustained basis the adherence by the various Ministries and Departments, as also individual officials, to the contents of the order by obtaining weekly reports under the relevant heads.

Instead of making unsubstantiated claims, the Finance Secretary should be asked to work out the precise nature of the savings likely to be made on specific counts on the assumption of full implementation and also give his reasonable expectation in practical terms so that they become targets for the cell to keep tabs on.

In sum, this should not become yet another austerity hype, the only achievements to show for it being the forced vacation by the Foreign Minister, Mr S. M. Krishna, and his Minister of State, Mr Sashi Tharoor, of their luxurious suites in five-star hotels which they had made their home.

B. S. RAGHAVAN