Curtailing avoidable expenditure: 20% reduction in controllable expenditure – FinMin OM

Steps to curb wasteful/ avoidable expenditure and aim for 20% reduction in controllable expenditure – FinMin OM dated 10.06.2021

No.7(1)E.Coord/2020
Government of India
Ministry of Finance
Department of Expenditure

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North Block, New Delhi
Dated the 10th June, 2021

Office Memorandum

Subject: Curtailing avoidable expenditure: 20% reduction in controllable expenditure.

The Government has decided all Ministries/Departments should take steps to curb wasteful/ avoidable expenditure and aim for 20% reduction in controllable expenditure. The Department of Expenditure has been directed to review the progress in the matter

2. Therefore, all the Ministries/Departments are requested to take steps to curtail all avoidable non-scheme expenditure and aim for 20% reduction in controllable expenditure, in compliance of the above decision. Expenditure in 2019-20 may be taken as the baseline for this purpose. A suggestive list of object heads of controllable expenditure is attached.

3. Expenditure related to containment of the Covid-19 pandemic is excluded from the scope of this order.

4. This issues with the approval of Finance Secretary.

(Thanglemlian)
Joint Secretary to the Government of India

1. Secretaries to the Government of India
2. All Financial Advisers of Ministries/Departments

Encl: Suggestive List of Object Heads.

A Suggestive List of Object Heads and their Codes under which expenditure Shall be controlled

Code Description

03 Overtime allowance
05 Rewards
11 Domestic Travel Expenses
12 Foreign Travel Expenses
13 Office Expenses
14 Rents, Rates and Taxes
15 Royalty
16 Publications

20 Other Administrative Expenses
21 Supplies and Materials
23 Cost of Ration
24 POL
25 Clothing and Tentage
26 Advertising and Publicity
27 Minor Works, Maintenance
30 Service or Commitment Charges
31 Grants-in-aid General
32 Contribution
50 Other Charges

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