Orders to reduce costs to central employees will be cut on other expenses, including overtime allowances

New Delhi, 11 June 2021 Friday

In order to reduce the cost, the overtime and rewards of the employees of various ministries of the central government will be reduced by 20%. The government has carried out this exercise to control the cost.

The Expenditure Department of the Ministry of Finance issued a memorandum on Thursday, which was sent to all secretaries of the Government of India and financial advisers of ministries and departments. Which called for measures to curb wasteful spending and reduce it by 20%.

The memorandum states that all Ministries / Departments are requested to take steps to reduce all avoidable non-plan expenditures. Expenditure in 2019-20 can be taken as a baseline for this purpose. However, the memorandum clearly states that costs related to the prevention of the Kovid epidemic are excluded from the scope of this order.

Overtime Allowance, Awards (Rewards), Domestic Travel, Overseas Travel Expenses, Office Expenses, Rents, Rates & Taxes, Royalties, Publications, Other Administrative Expenses, Supplies & Materials, Ration Expenses, POL, Clothing & Tents, Advertising & Promotion, Small Works, maintenance, service charges, contributions and other charges.

On this issue, a senior official said that one of the reasons behind ordering this cost cut is that this is the right time to cut as the system is not working at 100% capacity.