Andhra Pradesh – Economy in expenditure for the financial year 2014-15


In order to ensure that adequate funds are available for taking up priority developmental programmes of the Government of Andhra Pradesh, the following instructions are issued to promote fiscal discipline and an approach of financial prudence in government departments.

i) Creation of posts would be done based on absolute necessity only. No proposals for up gradation shall be entertained.

ii) All the departments are advised to critically review the necessity of continuing permitted number of Outsourcing of Staff and see if the purpose can be served by reducing the number. In any case, no further sanction of Outsourcing of support staff shall be proposed by the departments except when absolutely necessary.

iii) No proposal for abolition of existing revenue stream or concession of any kind which results in reduction of revenues shall be entertained.

iv) The proposal which involves additional burden on exchequer shall not be permitted except when absolutely necessary.

v) The ban on purchase of new vehicles ordered in G.O.Ms.No.170, Fin (W&M) Dept, dt.06.07.2005 shall continue.

vi) All the departments are advised to examine the necessity of continuing the number of hired vehicles already permitted and to reduce them to the barest minimum. Further hiring of vehicles require specific sanction of the Government

vii) Entertaining at Government expenditure should be reduced to the barest minimum. All the Departments are advised to observe economy in expenditure in holding conferences/ seminars / meetings. Holding of meetings and conferences at “Five Star Hotels” at State cost should be avoided except when absolutely necessary.

viii) All Ministers, other dignitaries of Cabinet Rank and officials drawing salary of Rs.80,000 (fixed) only are permitted to travel by air in business class as per eligibility. All others who are eligible to travel by air shall travel in economy class only for all domestic travel.

(ix) No foreign visits at the cost of State exchequer will be allowed

(x) The expenditure on advertisements directly by the departments shall be limited to the barest minimum and it shall be paid from the budget provision of the concerned departments. The media campaign of Flag Ship Programme Campaign is exempted.

2. All the Departments of Secretariat and all Heads of Departments are requested to follow the above instructions scrupulously without any deviation. Any failure on the part of the Departments to implement the above instructions will be viewed seriously by the Government and the budget of that department shall be curtailed to that extent.

3. Any relaxation of the above instructions in exceptional cases invariably requires the approval of the Hon’ble Chief Minister as stipulated in the A.P.Business Rules and Secretariat Office Manual in this regard.

4. The above orders are also applicable to the Panchayat Raj Institutions, all Local Bodies including Municipalities / Municipal Corporations, Public Sector Undertakings, Universities and all Grant-in-Aid Institutions.

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