GUWAHATI The Assam government has come out with a series of austerity measures, including cutting fuel expenditure by 20 per cent and reducing the size of the parade of all ministers, to ensure fiscal prudence in the wake of the West Asia crisis.
In an “Advice on Austerity Measures” issued in the form of an “executive order” by Finance Commissioner and Minister Jayant Narlikar on Monday, the government has set a target to cut revenue and expenditure of enterprises by 10 per cent, excluding salaries, pensions, debt repayment and chargeable expenses.
It also included some steps to enhance revenue generation and conduct energy audits to reduce energy wastage.
“For the sake of administrative propriety and in light of the national appeal arising from the prevailing crisis in West Asia, the government deems it necessary to impose additional fiscal and economic prudence measures,” he said.
Narlikar said that the Finance Ministry has, from time to time, issued “general instructions on austerity measures” to contain non-development expenditures and mobilize additional resources for priority schemes, and these measures are aimed at enhancing fiscal discipline without negatively impacting operational efficiency.
He stressed that in the current circumstances that require “high administrative preparedness and national solidarity,” a set of directives are being issued to all departments and district administrations for strict compliance until further orders are issued.
A 20 per cent reduction in POL expenditure will be implemented during the current financial year, the order said.
She added, “Reducing institutional revenues/expenses by 10% in the current year compared to the fiscal year 2025-2026. Exceptions include salaries, pensions, debt repayment, and charged expenses.”
To achieve these objectives, the size of the motorcade of the Prime Minister, other ministers and senior officials will be reduced without compromising the stipulated security protocol, while the movement of coalition forces and Assam Police between districts will be restricted.
“In emergency situations related to law and order, prior approval must be obtained from the government. The internal and political administration will issue necessary directions in this regard,” he added.
The government said that priority will be given to electric cars when leasing vehicles by government departments, and public transportation and the use of cars and electric vehicles will be enhanced.
The Department of Transport will issue a notification on incentives for purchase of EVs by the public at large and for development of public EV charging infrastructure across the state.
“The MHA will initiate the transition of municipal public transport towards non-fossil fuel alternatives in the next 12 months; the Guwahati Municipal Corporation will begin the transition towards a fully green public transport system,” the order said.
Furthermore, official or private foreign visits by ministers and government officials remain postponed for the next six months, except for cases required by national or strategic interests, educational or medical purposes, or visits by immediate family members residing abroad, subject to prior approval from the Prime Minister.
By banning the purchase of new vehicles for the next six months, the government has asked to reduce the movement of official vehicles within the state and restrict non-essential travel within or outside the state.
“All old and obsolete government vehicles should be disposed of immediately. The General Administration Department will issue specific guidelines in this regard,” the order said.
To reduce government spending, it was advised to postpone large gatherings or physical meetings or convert them to virtual mode unless they are related to essential services.
“Business lunches, formal dinners, cultural events, lavish hospitality arrangements and entertainment expenses should be avoided at the expense of the public exchequer. Unnecessary training programs or familiarization visits involving travel can be avoided,” she added.
The government also said that international travel, both official and personal, may be postponed, and this will be reviewed in six months.
“Officers who have obtained prior approval but are yet to undertake such a trip are encouraged to reconsider their plans. Existing permanent buildings, seminar halls and auditoriums should be used to organize inevitable government functions instead of constructing temporary vandals,” he added.
The government has also asked all its employees to economize on petrol and diesel for personal use.
To increase revenue generation, all departments must ensure timely review and rationalization of user fees, license fees, rental rentals and service charges, wherever possible, according to the order.
He added, “All administrative authorities must take the necessary steps to exploit the assets, including buildings, community halls, and others that were created in the various plans, by establishing a mechanism to exploit them commercially and generate revenues for the state.”
Further, the order said that income generating activities should always be done through the e-government receipt accounting system, i.e. through the online system only.
“Departments should conduct energy audit in their offices to reduce wastage of electricity. Municipal authorities should economize on energy consumption by avoiding wasteful use of street lights etc,” he added.
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