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Assam Cracks Down On Govt Spending With Six-month Austerity Drive After PM Modi’s Call

  • May 14, 2026

Addressing a press conference after the meeting, Sarma said the measures were aimed at reducing avoidable expenditure and promoting fuel conservation in line with Prime Minister Narendra Modi’s recent appeal for austerity and energy efficiency.

Assam Chief Minister Himanta Biswa Sarma | Image: ANI

The Assam government on Wednesday rolled out a six-month austerity programme, announcing a series of expenditure-cutting measures ranging from a freeze on new vehicle purchases to restrictions on foreign travel by ministers and officials.

The decisions were taken at the first Cabinet meeting chaired by Chief Minister Himanta Biswa Sarma after the formation of the new government.

Addressing a press conference after the meeting, Sarma said the measures were aimed at reducing avoidable expenditure and promoting fuel conservation in line with Prime Minister Narendra Modi’s recent appeal for austerity and energy efficiency.

“One of the major decisions is that the Assam government will not purchase any new vehicles for the next six months,” Sarma said.

He added that even newly inducted ministers would continue using existing government vehicles during this period.

In the first #AssamCabinet meeting of NDA 3.0 Govt, we approved a host of important decisions

✅A comprehensive 6 month Austerity plan of the Govt
✅UCC to be tabled in Assam Assembly
✅Constitution of Task Force for 2 lakh Govt jobs
✅A museum for Bhupen Hazarika in Guwahati pic.twitter.com/wgjFig9uLB

— Himanta Biswa Sarma (@himantabiswa) May 13, 2026

“The newly elected ministers will not get any new vehicles for six months. Existing vehicles will continue to be used,” he said.

In another major decision, the government imposed a temporary ban on foreign travel by ministers, officers and government employees for the next six months.

“From tomorrow onwards, no government minister, employee or officer will be able to travel abroad, even at their own expense, for the next six months, except in medical emergency cases,” the Chief Minister said.

According to the new guidelines, any official foreign visit during the austerity period will require prior approval from the Chief Minister’s Office.

Officials have also been advised to attend international meetings, conferences and seminars virtually from Guwahati instead of travelling overseas.

The state Cabinet further decided to reduce the size of convoys attached to ministers and senior government officials, including vehicles linked to the Raj Bhavan.

“Including the Governor’s convoy, all ministerial and official convoys will be downsized for at least six months,” Sarma said.

The government has also directed departments to cut fuel expenditure by 20 per cent compared to the previous financial year.

As part of the austerity measures, departments have been instructed not to procure foreign-made products during the six-month period.

“For the next six months, the Assam government will not purchase international or foreign products, whether mobile phones or any other items,” Sarma said.

Physical seminars, workshops and conferences organised by government departments have also been suspended for the next six months. Departments will instead conduct meetings and training programmes virtually to reduce expenditure.

At the same time, the government announced plans to gradually replace old vehicles with electric vehicles as part of a larger energy conservation strategy.

Officials said vehicles older than 15 to 20 years would be phased out in stages and departments may hire electric vehicles instead of purchasing new ones.

The austerity measures come shortly after Prime Minister Narendra Modi called for reduced fuel consumption and greater economic discipline in view of the ongoing crisis in West Asia and concerns over rising global energy costs.

Source : https://www.freepressjournal.in/india/assam-cracks-down-on-govt-spending-with-six-month-austerity-drive-after-pm-modis-call

 

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