The Union government has decided to reduce wasteful expenditure on items such as travel and food by 20 percent.
A decision of this effect was taken at a recent meeting of the Cabinet Committee on Investment and Growth (CCIG), chaired by Prime Minister Narendra Modi.
The move is being seen as the Centre’s attempt to avoid fiscal slippage by containing non-development expenditure and controlling fiscal deficit well within the limit of budgeted target of 3.3 percent during 2019-20 financial year.
With the GDP growth expected to slow down to an 11-year low of 5 per cent during the ongoing fiscal, the task of maintaining fiscal discipline becomes more challenging.
The CCIG includes Defence Minister Rajnath Singh, Home Minister Amit Shah, Road Transport and Highways Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Railways Minister Piyush Goyal as members.