MP govt launches austerity drive, bans foreign trips and VIP spending
Bhopal, July 17
Madhya Pradesh government has launched a sweeping austerity drive across government departments and state‑run institutions, imposing restrictions on non‑essential expenditure, including foreign travel, VIP hospitality, costly official events and new consultancy contracts, as part of efforts to strengthen fiscal discipline ahead of the 2026‑27 and 2027‑28 financial years.
The Finance Department has issued detailed guidelines making the measures mandatory for all government departments, corporations, boards, public sector undertakings and state universities with immediate effect.
"The state government is committed to maintaining strict financial discipline and ensuring optimum utilisation of public resources. The instructions issued by the Finance Department shall be mandatory for all departments and government institutions," the government said in the order on Friday.
Under the new guidelines, all foreign visits funded by the state government or its undertakings have been suspended until further orders unless considered unavoidable. Officials travelling on government duty have also been directed to use only economy class for air travel.
In a move aimed at curbing VIP culture and avoidable expenditure, the government has prohibited spending on VIP gifts, reception ceremonies and the printing of expensive government calendars and diaries for the New Year or other occasions.
The order also seeks to reduce administrative expenditure by banning costly workshops, meetings and training programmes in hotels and commercial venues.
Departments have instead been asked to use government buildings or organise such programmes through virtual platforms and webinars wherever feasible. Non‑essential expenditure on office interior decoration has also been stopped.
To rationalise transport‑related expenses, the government has made vehicle pooling mandatory across departments. If an officer is given additional charge, the vehicle attached to that post will be reassigned to another eligible officer.
Heads of departments have also been instructed to minimise vehicle hire and ensure that a single vehicle is shared by two or more officers wherever possible.
"The objective of these measures is to eliminate avoidable expenditure, optimise available resources and ensure that public funds are utilised for priority developmental activities and welfare programmes," the government said.
The Finance Department has also imposed a complete ban on engaging new consultancy services.
In another significant decision aimed at strengthening the state exchequer, all corporations, boards and government undertakings have been directed to transfer the maximum possible amount of their dividends to the state government's account.
— IANS
Reader Comments
Good initiative but I hope these savings actually reach development projects and not just sit in some government account. Also curious how they'll define 'unavoidable' foreign trips - that could be a loophole big enough to drive a truck through.
As a taxpayer from Indore, I'm happy to see this. But let's be real - the real waste is in subsidies and freebies before elections. This is just trimming the edges. Still, a step in the right direction. 👏
Vehicle pooling is long overdue! In my department, every officer has a separate car even when they sit in the same building. Hope they enforce this strictly and don't just treat it as a paper exercise.
Yaar, this is all good but what about the lakhs of crores spent on subsidies for industrialists? Ban foreign trips is like putting a bandaid on a bullet wound. Need to look at big-ticket items too, not just calendars and diaries.
As someone working in a state PSU, I can tell you that 90% of our 'training programmes' in 5-star hotels are just junkets for senior officers. Banning expensive workshops is a masterstroke. Hope the money saved goes to improving rural roads and health centres.
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