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Cut out all wasteful expenses, PM tells ministers

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Agencies

Posted: Jun 05, 2008 at 1154 hrs IST

New Delhi, June 5: Asking Union Ministers to take austerity measures in view of rising oil prices, Prime Minister Manmohan Singh on Thursday recommended major cuts in their expenses, especially on foreign travel.

Noting that the "huge burden imposed on our financial resources due to the continuous rising trend in global oil prices and our dependence on import of crude", he said: "I am, therefore, writing to ask you to severely curtail expenditure on air travel, particularly foreign travel, except in cases where it is deemed to be absolutely necessary."

In a letter to his ministerial colleagues, Singh said while "we need to explain to the people the constraints and reasons that have compelled the government to introduce these measures" to hike petro product prices, it was simultaneously "equally necessary for us to introduce the utmost economy and in our own administrations and establishments."

He said it could not be denied that there was "substantial scope" for reducing expenditure on travel and administration.

"As we ask the people to bear some of the financial burden of our oil imports, it is not only necessary from the resource conservation point of view but also as a moral duty to cut out all wasteful expenditure in our own establishments," Singh said.

The Prime Minister maintained that the economy measures like cuts in foreign travel "may be made applicable immediately for your own self and also for all senior functionaries."

Instructions would be issued to the Cabinet Secretary "to introduce more rigorous scrutiny of foreign travel proposals," he said.

Singh told his ministerial colleagues "the best prudence can be exercised at your own level with regard to both foreign travel and local travel for you and your officers."

"As we initiate steps to meet this resource crunch, it is inevitable that some of the burden would have to be borne by the public," Singh said, adding "I seek your fullest cooperation in this matter of importance and urgency."

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