FinMin Bans Creation Of New Posts In Govt

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In a bid to save resources for “priority schemes“,
The finance ministry on Friday issued a detailed list on expenditure management.

Earlier, the department had extended curbs on expenditures by three months from July.
It had in April classified government departments into three categories and tightened their spending for the April-June period,
Barring for those fighting the outbreak.
The ministries or departments under category ‘C’ such as petrochemicals, coal, commerce, telecommunications, among others, could spend only 15% of budget estimate
for the current year.
While those in category ‘B’ such as fertilizers, posts, defence services can spend only 20%.
No curbs were placed for departments under category ‘A’ that include agriculture, ayurveda, pharmaceuticals, civil aviation, rural development, among others.

Why these measures

The coronavirus pandemic has severely affected the revenues of the central government.
India’s economy shrunk 23.9% in the June quarter.
The total shortfall in collection of GST estimated at ₹2.35 lakh crore.

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