Will austerity measures, and not better policies, reduce govt expenditure?

GN Bureau | May 21, 2012



Troubled economy forced finance minister Pranab Mukherjee to announce austerity measures to reduce government expenditure. Minister has put a blanket ban on buying new vehicles by the government, besides imposing curbs on holding workshops/meetings by government officials at five-star hotels. Foreign trips by government officials will also be restricted.

Just as these measures were being taken, the civil aviation minister invited journalists to join him and an entourage of officials to the US to take delivery of B787 Dreamliner. Travel and accommodation will be taken care of by the ministry, the invite said.

Do you think austerity measures and not better policies are required to reduce govt expenditure?


 

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