“We are expecting a shortfall in receipts and have decided to rationalise expenditure,” Chief Minister Sheila Dikshit said after the Cabinet meeting. The guidelines include putting on the backburner all projects unrelated to the Commonwealth Games.

The government is constructing 19 flyovers at present out of which only a few head for the Commonwealth site. All departments have been instructed to prioritise their proposals. The guidelines have put a ceiling on foreign travel.

The Cabinet has also said proposals for the purchase of vehicles will be considered only on merit. All obsolete vehicles and equipment should be disposed of to generate revenue. The Cabinet has also observed that a bare minimum should be spent on government functions.

Dikshit said there will be a complete freeze on recruitment in all departments other than Transport, PWD, Health and Education. The CM has stressed on cutting down on advertisements of tenders by going in for e-tendering.