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Assam Government Implements Austerity Measures Amid Global Crisis
Gyanhigyan english | May 20, 2026 8:40 PM CST

A file image of Assam Legislative Assembly. (AT Photo) 

Guwahati, May 20: In response to the ongoing crisis in West Asia, the Assam government has introduced a range of austerity measures aimed at promoting fiscal responsibility. This includes a significant 20% reduction in fuel expenses and a downsizing of ministerial convoys.


Details of the Executive Order

On Monday, Finance Commissioner and Secretary Jayant Narlikar issued an Executive Order titled “Advisory on Austerity Measures,” instructing all departments and district administrations to cut revenue and establishment expenditures by 10% for the current financial year.


However, salaries, pensions, debt repayments, and charged expenditures are exempt from these cuts.


The directive also includes a 20% reduction in spending on Petrol, Oil, and Lubricants (POL) for the financial year.


Focus on Green Mobility

Narlikar emphasized the need for fiscal prudence in light of the national appeal due to the West Asia crisis. He stated that the government is prioritizing electric vehicles for official use as part of its green mobility initiative.


Departments are encouraged to utilize public transport, carpooling, and electric vehicles. The Transport Department will soon announce incentives for electric vehicle purchases and enhance public EV charging infrastructure across the state.


Transition to Non-Fossil Fuel Alternatives

The Department of Housing and Urban Affairs (DoHUA) has been tasked with transitioning municipal public transport systems to non-fossil fuel alternatives within the next year. Additionally, the Guwahati Municipal Corporation is expected to work towards a fully green public transport system.


Administrative Readiness and Compliance

Narlikar noted that the current circumstances necessitate heightened administrative readiness and national solidarity, making adherence to the new directives crucial until further notice.


Departments are also instructed to boost revenue generation and conduct energy audits to reduce electricity wastage. Municipal authorities must minimize unnecessary power consumption, including the excessive use of streetlights.


Restrictions on Foreign Visits

Foreign trips by ministers and government officials are postponed for the next six months, except for cases involving national interests, education, medical emergencies, or visits to immediate family abroad, which will require prior approval from the Chief Minister.


Furthermore, all departments must ensure that revenue-generating activities are processed exclusively through the Electronic Government Receipt Accounting System (e-GRAS) platform.



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