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Modi govt's austerity drive: No meetings at 5-star hotels, no first class air travel

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V.Balasubramani

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Modi govt's austerity drive: No meetings at 5-star hotels, no first class air travel

NEW DELHI: Unveiling an austerity drive to cut non-plan expenditure by 10 per cent, the Union government has barred bureaucrats from travelling first class on overseas visits and have been asked to use video conferencing as much as possible.

With an aim to restrict fiscal deficit to 4.1 per cent of GDP in 2014-15, the finance ministry has barred officials from holding meetings in 5-star hotels and put a freeze on fresh appointments and filling up posts lying vacant for over one year.

"While officers are entitled to various classes of air travel depending on seniority, utmost economy would need to be observed while exercising the choice keeping the limitations of budget in mind. However, there would no bookings in the first class," said the office memorandum.

The facility of video conferencing, it said, "may be used effectively".

The finance ministry said purchase of new vehicles to meet operational requirement of defence forces, paramilitary forces and security organisations are permitted but ban on purchase of any other vehicles would continue.

Read more:
Modi govt's austerity drive: No meeting at 5-star hotels, no first class air travel - The Times of India
 
We now have fancy video conferencing gadgets that do an outstanding job even connecting 100's of people at different locations!

But how is NAmO going to manage the bureaucracy which is neck deep in nepotism, favoritism, brazen corruption, indiscipline and superciliousness? A tough job indeed!
 
Sir,

It is this Government, that has taken effective measures to install electronic surveillance system that will track whether 100,000 government officials are showing up for work on time for more output

The 62 panels of previous Government, called Groups of Ministers (GOMs) and Empowered Groups of Ministers (EGOMs), supposed to aid the decision-making process were scrapped.

Ministers were also asked to adopt austerity measures; among others not to buy new cars and were also asked to get PMO approval for expenditure which exceed one lakh.

The austerity measures also seem to include a ban on creation of new posts in government.
 
We now have fancy video conferencing gadgets that do an outstanding job even connecting 100's of people at different locations!

But how is NAmO going to manage the bureaucracy which is neck deep in nepotism, favoritism, brazen corruption, indiscipline and superciliousness? A tough job indeed!

While we have been hearing a lot about corrupt politicians, the corruption among top bureaucrats goes unnoticed. There us therefore reason now to doubt whether bureaucrats are not the "spoons" of the politicians in this.
 
This austerity measure is not a new one. Earlier Govt. also attempted this. Whenever the Govt. at the Centre wanted to cut expenditure, they take up travel and parties.

So far, no Govt. has disclosed the amount spent on these accounts for a specific period.
 
This austerity measure is not a new one. Earlier Govt. also attempted this.



Chandru Ji,

Earlier Government would have also taken such measures, but definitely not so swiftly. Modi’s Government assumed Office only in May 2014.
 
Many of us who were not with RSS may find the ways of the PM in handling bureaucracy as confusing. But there is a set pattern in his handling the officials of the governement departments. It follows the principle of SAMA, BEDHA, DHANA AND FINALLY DANDA. A time will come when Modiji will take the danda to correct the behaviour of the government servants. They will only know their entry time to office and the exit time will be decided by the ministers. This is how it had happened in GUJARAT. It may take some time but surely the officials will fall in line and they have no other go.
 
I hope Modi ji will insist on publishing performance expectations and achieved results of all Government agencies online. Any unit having 50 -100 employees must have their organizational goals available online by every quarter for inspection by the public. Agencies that need to protect national secrets can have other means of accountability.
 
In today's paper there is News item which says that Bureaucrats are not willing to disclose their properties and that of their immediate family members.
Wife of one Bureaucrat employed in IT sector has gone to court.Govt has extended the last date of submission of information to 31/12/2014.
New Delhi is full of Central Govt employees with their family members.No govt can be strict with their attendance.Even earlier Govts tried to be strict.
After sometime the Govt will relax to get a bulk of vote share of this group.
 
Modi govt's austerity drive...........

I had a bitter experience in this regard.There was no instruction from Government of India,but my boss a honest direct recruit officer did not like
the way senior officers were spending money lavishly on entertainment.There is a convention of all officers Deputy Secretaries & above ordering for tea biscuits
cool drinks etc during the meetings held in their rooms.In some days there will be more than one meeting.We both used to attend a number of meetings
in a day.After attending the meeting,she used to comment adversely about this practice.One day she asked me to dig up all earlier months expenses on this score
and to come up with the total expenditure in a year vis vis Budget allocation for entertainment expenses.since it is impossible to ask subordinate staff to collect
this information without any monetary compensation,I used to attend office on all holidays to compile the required information.I used to get terrific pressure to complete the task.
Once the information was compiled and put up to senior officers,they were very uncomfortable and asked me as to whether I do not have other important matters to deal with
and why I waste my valuable time on such minor matters.Secretary ordered information for the past 5 years before giving a final decision.
My work load and pressure from Boss only increased.When the required information was compiled and put up,an order was passed by the Secretary that to guard against misuse
of this facility by personal staff of all senior officers,every personal staff of senior officers should maintain a register indicating the particulars of all meetings and particulars of all
items ordered from the canteen. this register should be put up by the personal staff for review by the concerned officer.
Again I had to prepare the office order and get it approved by the competent authority.
There has been no reduction in entertainment expenses even after issue of office order.This is how Govt functions.
Though the individual claims of all ministers is getting passed in PMO's office,they enjoy all privileges through the Public Sector undertakings attached to their Ministries.
 
Ministers a,PM and govts have tenures of five years. They are under pressure to perform

Central govt officials have a lifetime to spend. They guard their turf, perks, priveleges.the govt can try to some extent control .beyond an extent it is counter productive

a govt can be more easily brought down by civil servants who can refuse to cooperate. they can perform only if they are left free to perform and they enjoy their work

modi by sermonising is digging his own grave. it is central govt , not state machinery where he could do what he liked with impunity. alreadty there murmurs about a

non performing govt.Talk has to be accompanied by performance on the ground
 
.Govt has extended the last date of submission of information to 31/12/2014.
New Delhi is full of Central Govt employees with their family members.No govt can be strict with their attendance.Even earlier Govts tried to be strict.
After sometime the Govt will relax to get a bulk of vote share of this group.


Krishnamurthy Ji,

It is not obligatory, but it is mandatory.

Please go through the links.

Lokpal Act: Govt employees to declare assets under new rules

The Government of India has notified new rules making it mandatory for all employees to declare their assets and liabilities and those of their spouses and dependent children

Read more at: http://www.livemint.com/Politics/vUvkjcRvLz9FXklgYHTkRK/Lokpal-Act-Govt-employees-to-declare-assets-under-new-rules.html?utm_source=copy

Govt forms committee to revise form for filing property return

New Delhi: The Centre has formed a committee to simplify forms and the process for central government employees to file details of their assets and liabilities along with that of their spouses and dependent children as mandated by the Lokpal Act.

The committee, formed by the Department of Personnel and Training (DoPT), will examine the forms prescribed under the Lokpal rules for filing the returns and suggest necessary changes in them, official sources said.

The move comes following "genuine concerns and apprehensions" raised by some of the officials about posting of every information provided by them in public domain, the sources said.

The government may change the format of the form on the basis of the committee's recommendation, they said.

The DoPT had yesterday notified the Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and the Limits for Exemption of Assets in Filing Returns) Amendment Rules, 2014, extending the date for the filing of such returns to December 31 from September 15.

Read more: Govt forms committee to revise form for filing property return

And I hope non compliance of filing Annual Property Return will attract disciplinary proceedings. Self-discipline is also important.
 
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Ministers a,PM and govts have tenures of five years. They are under pressure to perform

Central govt officials have a lifetime to spend.



Thank God we have a system to change the jockey every five years to goad them among other things to deliver the goods.
 
I had a bitter experience in this regard.There was no instruction from Government of India,but my boss a honest direct recruit officer did not like
the way senior officers were spending money lavishly on entertainment.

Krishnamurthy Ji,

Thanks for sharing your experience.

Like your boss, if we had politicians we will march towards prosperity.

With changed Government, now let us hope for favorable changes, a ‘Minimum Government, Maximum Governance'.
 
Chandru Ji,

Earlier Government would have also taken such measures, but definitely not so swiftly. Modi’s Government assumed Office only in May 2014.


Sir,

It is not the question of time, whether immediate or later, but the effectiveness is the point to be noted. How much saved on these two categories is not known.
 
Sir,

It is not the question of time, whether immediate or later, but the effectiveness is the point to be noted. How much saved on these two categories is not known.


Sir,

It was not immediately clear as to how much the Government would save through implementing such austerity measures although the savings are not expected to be very significant.

And there are reports describing such measures are like using a band-aid to stop the bleeding from an artery.

The government knows well that its announced measures are not enough but had to take such measures with a view to reduce the massive expenses in non-plan expenditure.

Govt. may also consider seriously combining more such measures, besides the announced ones to achieve better result.

Let us wait and see.
 
I would like to share the 'Editorial' appeared in 'The Hindu' today on the subject.

Growth and austerity

The
austerity measures unrolled by the Finance Ministry last week send out a clear signal that all is not well with government finances; at least, not yet. Though business sentiment has improved noticeably and some key indicators point to a pick-up in growth, government expenditure is running well ahead of revenues, which have not grown at the expected pace. Thus, the Finance Ministry has been forced to order a cut in all discretionary spending; the target is to prune expenditure, other than Plan-related, by 10 per cent. The only exceptions are interest payments, debt repayments, defence capital, salaries, pensions and grants to States. These occupy a large proportion of non-Plan expenditure, which means that the savings might not be much. Yet, the fact that the government deems this necessary shows the seriousness of the problem that it faces in keeping the fiscal deficit in check. Indirect tax collections have grown at just 5.8 per cent in the first half of this fiscal compared to the budgeted target of 25.8 per cent. On the direct taxes front, refunds have eaten away almost half of the incremental collections, which have otherwise been on target. Adding to the government’s woes is the sharp rise in defence pensions due to the implementation of the ‘one-rank, one-pension’ scheme. Outgo on this is expected to shoot up by 40 per cent, or Rs.16,000 crore, this fiscal. Importantly, this was not budgeted for fully.


Read more at: Growth and austerity - The Hindu
 
Govt employees are the administrative arms of the govt to deliver on the initiatives of the govt.

Unless they are given autonomy and freedom to perform , no results are likely to be forthcoming.

Every new govt in initial enthusiasm tries various methods to reform the bureaucracy.

after sometime they give up.

when faced with pressures to perform automatically the political class will compromise with civil servants and give them what they want for results.

the exercise to prune expenditure by cutting entertainment,hospitality expenses and foreign travel , car purchase, attending of seminars etc is a yearly ritual.

also raids to maintain punctuality , observing office hours are periodic exercises mostly carried out for sometime.

the rot is at the top .

when ministers and secretaries do what they preach , automatically others fall in line.

only a few ministers in last govt were known to be performers . their ministries were managed well

this govt lacks talent and experience. except 4 or 5 others are not fit to be ministers.

hence there may not be much performance.
 
Govt employees are the administrative arms of the govt to deliver on the initiatives of the govt.

Unless they are given autonomy and freedom to perform , no results are likely to be forthcoming.

this govt lacks talent and experience. except 4 or 5 others are not fit to be ministers.

hence there may not be much performance.


Krish Ji,

Government formed by different political parties may come and go.

But Government Officers and staff remain there till attaining superannuation.

Their performance is governed by a well established system.

All of them are free to act within the rules which governs them.

The issue is about enforcing austerity measures with an eye on economy.

I think it is too short period to assess the performance and talent of a Government.

Anyway thanks for your opinion.

Since the general public have already tasted the bitter experience of an experienced Government they exercised their franchise seeking change of power at Centre.
 
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Economy measures are important for all whether government or public sector or private sector. I have come across several marketing executives travelling by economy class despite eligibility for busimess or first class when they visit india to secure business. There was a powerful article about a korean company with operations in USA. The team stayed in a rented apartment instead of expensive hotels, and even the chairman stayed with them and traveled by metro when he visited USA. Shashi tharoor when he became a minister lived in a 7 star hotel for months because his accommodation was not ready. It is necessary to cultivate a mindset in all to accept and practice austerity without sacrificing comforts but shunning luxuries.
 
There is a story. A Kingdom was in search of its heir prince who strayed away. Dandora was beaten to bring the prince back to ascend the throne. After search, two youthful were picked up both claiming to be the heir apparent. Both competed successfully through all tests. The ministers were in fix. At night, nevertheless, they were given a sumptuous meal. After dinner they were directed to go their respective rooms for sleep and were asked to meet the minister in the morning. Next morning the contenders were asked whether they had good night's sleep. The first said: Yes, I had. But the second said: Yes, but there was a small hard stone-like thing disturbed his sleep. The second was picked as the true heir to ascend the throne. Economy is an important thing and it should take us forward. Well if we can live like old era people, we do not need electricity and that life can improve our life.
 
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