Question : EXTRAVAGANT EXPENDITURE BY PSUs



(a) whether the Government has laid down any rules to check extravagant expenditure by PSUs;

(b) if so, the details thereof;

(c) whether any violation of these guidelines has been reported;

(d) if so, the details thereof; and

(e) the steps being taken to streamline the functioning of PSUs to cut wasteful expenditure?

Answer given by the minister

THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF HEAVY INDSUTRIES & PUBLIC ENTERPRISES (SHRI SONTOSH MOHAN DEV)

(a) to (e) : Government have issued guidelines on expenditure management from time to time for compliance by CPSEs. In view of directions given by Prime Minister, Department of Public Enterprises issued instructions in September, 2004 to all the administrative Ministries/Departments emphasizing the need for efficiency, rectitude and austerity. Subsequently in October, 2004, all administrative Ministries/ Departments were requested to advise CPSEs under their administrative control to strictly comply with the austerity measures announced by the Government. Administrative Ministries have been asked to monitor the instances of deviation as well as to ensure compliance of these measures.