No first class facilities to bureaucrats, orders Modi

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  • In a bid to decline Fiscal deficit to a seven-year low, PM Modi ordered that bureaucrats should quit first class travelling start paying for their spouses' air tickets.
  • The ban on first class travel could save up to Rs 2 lakh.
  • It is part of an austerity drive launched by Modi on Thursday to cut discretionary spending by 10 per cent in the fiscal year to March 2015.
  • Finance Ministry directed that the resources should be optimised to maximum. It also mentioned that there is a need to continue to rationalise expenditure.
  • Purchase of cars for government officials and Five star hotel meetings have also been barred by the ministry.
  • "Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the government," the Finance Ministry said.