In a signal that the government is worried about the state of its finances, the finance ministry today banned creation of new government posts.
The ministry asked all departments to cut avoidable expenditure, including seminars and conferences at five-star hotels and abroad, purchase of new vehicles, foreign travel and appointment of consultants.
It also sought discipline in fiscal transfers to states, saying unspent balances would be taken into account before further funds were released.
It said there would be a ban on creation of Plan and non-Plan posts, except in new organisations which were set up in the current year based on already-approved schemes.
Expenditure secretary Sumit Bose said the measures were intended to promote fiscal discipline.
He said the departments should submit quarterly reports on action taken on these guidelines.
"In view of the commitment of the government to carry on the process of fiscal consolidation vigorously and to meet the fiscal and revenue deficit targets announced in Budget 2011-12, there is a need for economy and rationalisation of expenditure," he said.
Expressing concerns over bunching up of expenditure towards the end of the financial year, the finance ministry said not more than 33 per cent Budget estimates should be spent in the last quarter of the year.
It said in the last month of the year, payments should be made only
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