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Rediff.com  » News » Ministers clarify doubts about Centre's austerity drive

Ministers clarify doubts about Centre's austerity drive

Source: PTI
September 10, 2009 21:37 IST
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The issue of austerity measures came up at the meeting of the Union Cabinet on Thursday with ministers seeking clarification on the economy drive launched by the government.

The issue came up for an impromptu discussion when the Cabinet gave its approval to hike the Dearness Allowance for central government employees from 22 per cent to 27 per cent.

Cabinet sources said Agriculture Minister Sharad Pawar sought to know what sort of  a reception he should organise for his foreign counterpart, who is on an official visit to India and who had hosted him some time ago.

Another minister pointed out that External Affairs Minister Pranab Mukherjee and Commerce Minister Anand Sharma travel abroad frequently on official business, and suggested that there should be some laxity in the austerity guidelines for them.

In a lighter vein, another minister remarked that if the airline upgrades an official traveling economy class as the aircraft is empty, it should be considered as a commercial decision.

It was clarified that official dinners could be organised appropriately but conferences by government departments and ministries should not be held in five-star hotels.

The ministers said they would abide by the guidelines issued by the Finance Ministry.

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