GOVT. OF PUNJAB ISSUED AUSTERITY / ECONOMY MEASURES FOR THE FINANCIAL YEAR 2022-23.

AUSTERITY/ECONOMY MEASURES 2023

The Punjab Government has decided to observe utmost austerity in the usage of public money through prudent financial management, observance of financial discipline, and judicious reduction of expenditures without compromising the essential and core organizational functions/activities. Expenditures shall be required to be realigned with the organizational goals to make them target-based, cost-effective, and efficient.

2. In pursuance of approval of the Provincial Cabinet in its 3rd meeting held on 04.11.2022, the Austerity Committee for the current financial year 2022-23 is hereby constituted as under: 

Sr. No.	Name	Status
01	Finance Minister	Chairman
02	Finance Secretary	Member
03	Secretary P&D Board	Member
04	Special Secretary Finance (E&CF)	Member
05	Representative  of the Administrative Department (Not below BS-19)	Member
06	Additional Finance Secretary (LGF/G)	Member
07	Any co-opted member (s), if required	Secretary

3. Furthermore, the following austerity/economy measures during the current financial year 2022-23 shall be applicable to all Government Departments, Local Governments, Public Sector Companies & Authorities, Autonomous Bodies, Attached Departments, and Special Institutions with immediate effect:

i. Purchase of New Vehicles: There shall be a complete ban on the procurement of new vehicles, except the following: -

• Purpose-built service delivery related operational vehicles of Health, Punjab Emergency Services, Education, Police (APC, Prison van, Tow Truck, Fork Lifter), LG&CD, Agriculture, Livestock, PHAS, WASAS, PDMA, and Solid Waste Management Companies.

• Motorcycles to the extent of sanctioned strength approved by the Finance Department in terms of Sr. No.11 Note-2 of the Delegation of Financial Power Rules, 2016.

• Vehicles mentioned in PC-I of the development schemes approved by PDWP and higher forum.

ii. Contingent Paid Staff: Contingent Paid staff can be hired only in extremely emergent cases according to powers specified in Delegation of Financial Powers Rules, 2016 and in the light of notification No. SO(FRB)5-44/2019/WC-DW Policy dated 29.01.2021 of Regulation Wing, S&GAD. However, departments shall remain within the budgetary allocations for the purpose, under object head "A01277-Contingent Paid Staff". Moreover, no additional funds as a Supplementary Grant shall be provided for this head during current financial year 2022-23 and no re-appropriation shall be allowed/made without recommendations of the Austerity Committee.

iii. Purchase of Air Conditioners: Purchase of Air Conditioners exceeding the aggregate amount of Rs.1.000 million in the current financial year 2022-23 shall not be allowed, except with the prior concurrence/approval of the Austerity Committee.

iv. Treatment Abroad: There shall be a complete ban on treatment abroad at Government's expense. However, under inevitable situations, approval of the Chief Minister will be solicited for treatment abroad on Government's expense.

V. Air Travel: There shall be a complete ban on foreign visits of Government Officers /Officials through Government funding. Whenever required, cases for foreign visits shall be placed before the Austerity Committee for its approval. However, all Civil Servants, while undertaking foreign official tours if required, shall travel as per their entitlement on international flights. Moreover, the following foreign visits shall be exempted from the purview of the Austerity Committee.

• The officer's officials proceeding on short-term/long-term foreign training, scholarships for Foreign Masters / Ph.D. degrees, and foreign visits in connection with the Scheme titled "Institutional Strengthening of P&D Board and Capacity Building of Public Sector Employees" under ADP of Government of the Punjab and duly recommended/approved by the Program Steering Committee of the scheme.

4. Strict compliance with the aforesaid austerity measures shall be ensured by all concerned for the Financial Year 2022-23. For examining austerity-related cases, necessary documents and information shall be provided by the concerned Administrative Department or Attached Department.

5. It is advised that austerity-related procurement/purchase procedures may not be started without getting approval/recommendation from the Austerity Committee. 6. The above instructions/guidelines supersede the ones earlier issued on this subject vide this Department's letter No. FD.SO(GOODS)44-4/2021-22 dated 25.03.2022.
6. The above instructions/guidelines supersede the ones earlier issued on this subject vide this Department's letter No. FD.SO(GOODS)44-4/2021-22  dated 25.03.2022.

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