Assam aims 20% cut in fuel cost, 10% in revenue expense as part of austerity measures

The state government also listed out a few steps to enhance revenue generation and carry out energy audits for minimum wastage of power.

Guwahati: The Assam government has come out with a slew of austerity measures, including slashing fuel expenditure by 20 per cent and downsizing the convoy size of all ministers, to ensure fiscal prudence in the wake of the West Asia crisis.

In an 'Advisory on Austerity Measures' issued in the form of an 'Executive Order' by Finance Commissioner & Secretary Jayant Narlikar on Monday, the government set a target to cut 10 per cent in revenue and establishment expenditure, excluding salaries, pensions, debt repayment and charged spendings.

It also listed out a few steps to enhance revenue generation and carry out energy audits for minimum wastage of power.

"In the interest of administrative propriety and in view of the national appeal arising from the prevailing crisis in West Asia, the government considers it necessary to enforce additional measures of fiscal prudence and economy," he said.

The Finance Department has, from time to time, issued "general instructions on austerity measures" to contain non-developmental expenditure and mobilise additional resources for priority schemes, and such measures are intended to promote fiscal discipline without adversely affecting the operational efficiency, Narlikar said.

He stressed that in the present circumstances, which require "heightened administrative readiness and national solidarity", a set of directions are issued to all departments and district administrations for strict compliance until further orders.

The order said that a 20 per cent reduction in POL (Petrol, Oil, and Lubricants) expenditure shall be implemented during the current financial year.

"Ten per cent cut in revenue/establishment expenditure in the current year vis-a-vis FY2025-26. Exemptions include salaries, pensions, debt repayment and charged expenditure," it added.

To achieve these targets, the convoy size of the chief minister, other ministers and senior officials shall be reduced without compromising the prescribed security protocol, while inter-district movement of CAPF and Assam Police shall be restricted.

"In cases of urgency relating to law and order, prior approval of the government shall be obtained. Home & Political Department will issue necessary directives in this regard," it added.

The government said that priority shall be given to electric vehicles at the time of hiring of vehicles by the government departments, and public transport, carpooling and EV usage will be promoted.

The Transport department will issue a notification regarding incentives to buy EVs by public at large and to develop public EV charging infrastructure across the state.

"DoHUA to initiate transition of municipal public transport towards non-fossil fuel alternatives over the next 12 months; Guwahati Municipal Corporation to transition towards a fully green public transport system," the order said.

Besides, official or private foreign visits by ministers and government officials shall remain deferred for the next six months, except where such visits are necessitated by national or strategic interests, educational or medical purposes, or visits to immediate family members residing abroad, subject to prior approval of the chief minister.

Banning the purchase of new vehicles for the next six months, the government asked to minimise official vehicle movement within the state and restricted non-essential travel within or outside the state.

"All old and obsolete government vehicles shall be scrapped immediately. General Administration department shall issue specific guidelines in this regard," the order stated.

To cut government spending, large gatherings or physical meetings have been advised to be deferred or shifted to virtual mode unless related to essential services.

"Working lunches, official dinners, cultural functions, lavish hospitality arrangements and entertainment expenses, at the cost of the public exchequer, shall be avoided. Non-essential training programmes or exposure visits involving travel may be avoided," it added.

The government also said that international travel, both official and personal, may be deferred, and the same will be reviewed after six months.

"Officers who have received prior approval but have not yet undertaken such a journey are encouraged to reconsider their plans. Permanent existing buildings, seminar halls, and auditoriums should be used for organising unavoidable government functions instead of constructing temporary pandals," it added.

The government also asked all its employees to be economical in the consumption of petrol and diesel for personal use.

To increase revenue generation, all departments shall ensure timely revision and rationalisation of user charges, licence fees, lease rents and service charges wherever feasible, according to the order.

"All administrative departments shall take necessary steps to utilise the assets, i.e. buildings, community halls, etc., constructed under various schemes by developing a mechanism to utilise them commercially and generate revenues for the state," it added.

Besides, the order said that revenue-generating activities should invariably be through the Electronic Government Receipt Accounting System, (e-GRAS) module, meaning through online system only.

"Departments should carry out energy audit in their offices to reduce wastage of electricity. Municipal authorities to undertake economy in power consumption by avoiding wasteful usage of streetlights, etc," it added.