adopting austerity measures to contain unproductive non-developmental
expenditure.
on the role of both the Centre and the State governments in the task of
containing non developmental expenditures.
problems of special category states
need for caution to ensure that austerity measures would not be confined to
budgetary cuts, which would one day leave money only for payment of salaries
to government employees.
need to reduce the number of employees in Central and State Governments by
at least 10 percent during the Eighth Plan period.
Recapitulating the work done by the Committee on Austerity, the Deputy
Chairman informed the participants that during the period 1984-85 to
1990-91, the Non-Plan Revenue Expenditure (NPRE) of the 15 non-special
category states grew by 17.0%. In contrast, their revenue (including all
grants from the Centre) grew only by 15.1%.
need for prudence in public funds management through strict fiscal
discipline aimed at containing public expenditure.
on the functioning of State Electricity Boards (SEBs)
for containing government expenditure and the solutions for the problems of
the power sector.
austerity measures should start from the top.
treating the small savings loans to states as loans in perpetuity.
comprehensive coverage of public distribution systems in relation to
essential items.