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> Policies> economic survey 2000-01
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Economic Survey 2000-2001
[Review of Developments]
Fiscal developments
Expenditure management
1.53 Over the years the composition of central Government expenditure has acquired rigidity on account of growing number of precommitted items of expenditure. With a view to curb built-in expenditure growth and bring about structural changes in the composition of expenditure, the Union Budget (2000-01) proposed a number of initiatives which inter alia, included the following: all ongoing schemes will be subjected to rigorous zero-base budgeting scrutiny; the manpower requirements of Government departments will be reassessed by reviewing the norms for creation of posts and fresh recruitment in Government departments and institutions will be limited to minimum essential needs; the scheme for redeployment of surplus staff will be made more effective and a voluntary retirement scheme (VRS) will also be introduced for staff in the surplus pool; all subsidies would be reviewed with a view to bring in cost-based user charges wherever feasible; budgetary support to autonomous institutions would be reviewed and they will be encouraged to maximise generation of internal resources; the interest rate on general provident funds has reduced by 1 per cent to 11 per cent effective from April 1, 2000, for aligning it with the overall interest rate structure; and the Budget earmarked Rs.1,000 crore out of disinvestment proceeds for retiring Government debt.
1.54 During the course of the year, the Government took a series of measures for controling growth in non-plan, non-developmental expenditure which include, a mandatory 10 per cent cut in the budgetary allocation for non-plan non-salary expenditure of all ministries/departments and autonomous institutions; a complete ban on purchase of new vehicles for one year; ten per cent cut in the consumption and allocation of funds for expenditure on POL for staff cars; ban on creation of new posts for one year; and ban on foreign travel for study tours, seminars etc.
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