In what will be music to Shashi Tharoor’s ears, the Union government has rolled back much of its six-month-old economy drive. Ministers and bureaucrats need no longer travel ‘cattle class’ by air.
The order, to come into effect in the next financial year, is more significant because it signals economic recovery for the country after the recent slowdown. But the circular is quiet on the other significant austerity measure: restrictions on the use of facilities at five-star hotels.
Interestingly, the government only partially rolled back the stimulus package during the Union Budget last month, as it awaits full economic recovery.
According to the new order on expenditure management, travel on government account by air, both domestic and international, “may take place by the entitled class”. This means ministers and bureaucrats will be back to flying first class for travelling abroad on official trips, and business class for domestic travel.
But the austerity measures will stay for travel by air on LTC (leave travel concession); irrespective of entitlement, a minister or bureaucrat will have to fly economy class while travelling on LTC.
Several cabinet ministers, including Farooq Abdullah, Dayanidhi Maran and Anand Sharma, had protested against the austerity drive. Tharoor, the minister of state for external affairs, drew much flak for referring to the economy class as “cattle class”.
The austerity measures were announced in a circular dated September 7, 2009, which gave elaborate details on expenditure cuts, including restriction on holding meetings and conferences in five-star hotels, organising seminars abroad except for trade promotion, and purchase of official vehicles “except for operational requirements of the defence forces, central paramilitary forces and security-related organisations”.
The circular mandated a 10% cut in non-plan expenditure under domestic and foreign travel expenses for every ministry. Other areas pertained to publications, professional services, advertising and publicity, office expenses, and sundry administrative expenses. The circular also mandated a 5% cut in the remaining portions of the non-plan expenditure (excluding interest payment, debt repayment, defence capital, salaries, pension and finance commission grants to the states).
