Finance ministry seeks a 10 per cent cut in non-plan expenditure

The finance ministry has advised all ministries/departments to effect a mandatory 10 per cent cut in non-plan expenditure, minister of state for finance Namo Narain Meena informed the Lok Sabha in a written reply.

These include expenses on domestic and foreign travel, publications, professional services, advertising and publicity, office expenses, POL (except for security related requirement) and other administrative expenses for the year 2009-10. The remaining portion of non-plan expenditure will be subjected to a mandatory 5 per cent cut, she added.

Information relating to the amounts saved so far will be available with the ministries/departments and their attached/subordinate offices, the minister said.

Ministries/departments have full powers for incurring miscellaneous and contingent expenditure and data in regard to purchases is not maintained centrally. Since procurements are done by individual ministries/departments, all related complaints are also to be handled by them, she said.

Orders have been issued by DOP&T permitting ministries/departments to make purchases of items required for office consumption directly from Kendriya Bhandar/NCCF without calling for quotations or for granting purchase preference to Kendriya Bhandar/NCCFs, depending on the value of procurement.

Polymer currency notes

The government has decided to introduce polymer banknotes in Rs10 denomination on a trial basis to increase the life of bank notes. The RBI will put one billion pieces of Rs10 noted and has initiated the process of purchase of polymer notes on a trial basis, Meena said.

Polymer notes are being introduced in Rs10 denomination, where the incidence of counterfeiting is negligible, she pointed out.