The Madhya Pradesh government has introduced a two-year austerity policy to limit official spending. The measures include tighter rules on government-funded air travel, a ban on meetings and training sessions in hotels, reduced use of hired vehicles, and stricter controls on foreign trips, consultancy services and other administrative costs.
The state Finance Department issued the guidelines to all departments, corporations, boards, universities and state institutions to improve financial discipline and use public funds more efficiently.
Non-essential spending will stay under close watch for the next two years. Departments must optimise resources and cut avoidable expenses.
Foreign travel by officials is now allowed only for essential work, and domestic air travel requires approval based on need. All government-funded flights must be in economy class.
Workshops, meetings and training programmes cannot be held in hotels or commercial venues. They must take place in government buildings or online through virtual platforms and webinars.
Departments are required to introduce vehicle pooling to lower reliance on hired cars. Separate vehicles will not be provided for additional responsibilities.
Spending on office decoration and interior renovations is prohibited. New consultancy services have been suspended temporarily. State corporations and public sector units must transfer the maximum possible dividends to the government.
These steps follow earlier austerity actions taken after the Prime Minister’s appeal for prudent spending during the global oil crisis. The Chief Minister’s convoy was reduced from 13 to eight vehicles, and ministers were told to avoid large vehicle rallies.
The current government has broadened these efforts. Departments must follow the new rules over the next two years, with compliance to be monitored closely.


