The Centre has announced austerity measures to contain expenditure in Government Departments. The Finance Ministry has asked all ministries and departments to reduce non-Plan expenditure by 10 per cent in the current financial year.

It has banned creation of new posts in government departments, holding of meetings and conferences in five-star hotels, purchase of vehicles besides imposing curbs on foreign travel by the officials.

The office memorandum on 'Expenditure Management -Economy Measures and Rationalisation of Expenditure' also said that holding of exhibitions, seminars and conferences abroad is strongly discouraged.

It said, foreign visits should be so regulated as to ensure that each ministry remains within the allocated budget, after 10 per cent cut, for the same. Re-appropriation proposals on this would not be approved.

Our correspondent reports, the austerity measures have been announced in the context of current fiscal situation where there is a tremendous pressure on government's resources.

The government's fiscal deficit during 2011-12 was 5.7 per cent of the GDP. The Centre is aiming to bring it down to 5.1 per cent in the current fiscal.