Curbs on air travel, meetings in hotels: Madhya Pradesh's 2-year austerity policy

Published 18 July 2026 · politics

The Madhya Pradesh government has rolled out a comprehensive two-year austerity policy aimed at tightening control over official expenditure, with fresh restrictions on government-funded air

The Madhya Pradesh government has rolled out a comprehensive two-year austerity policy aimed at tightening control over official expenditure, with fresh restrictions on government-funded air travel, a ban on holding meetings and training programmes in hotels, curbs on the use of hired vehicles, and stricter norms for foreign travel, consultancy services and other administrative spending. The state Finance Department has issued the new guidelines for all government departments, corporations, boards, universities and other state-run institutions as part of an effort to strengthen financial discipline and ensure more efficient use of public resources. Read Full Story Under the new directives, non-essential government expenditure will remain under strict control for the next two years. The Finance Department said government departments have been instructed to optimise available resources while avoiding avoidable expenses across administrative functions.

LIMITS ON GOVT-FUNDED AIR TRAVEL The order places tighter conditions on official travel. Foreign visits by government officials will now be permitted only for essential official work, while domestic air travel will also require necessity-based approval. Officials travelling at government expense will be required to fly only in economy class. No Meetings or Training Programs in Hotels The government has also prohibited departments from organising workshops, meetings and training programmes in hotels or other commercial venues. Such events must instead be held in government buildings, while departments have been encouraged to conduct meetings and training sessions through virtual platforms and webinars wherever feasible to reduce costs. REDUCTION IN HIRED VEHICLES As part of the expenditure-cutting exercise, the Finance Department has directed departments to reduce dependence on hired vehicles by introducing a vehicle-pooling system.

Instead of allocating separate vehicles to multiple officers, departments will be required to share vehicles. Officials entrusted with additional departmental responsibilities will also not be provided separate vehicles for those assignments. OFFICE DECOR RESTRICTED The austerity measures further prohibit unnecessary spending on office decoration and interior renovation of officials' chambers and cabins. Department heads have been instructed to closely monitor such expenditure. The government has also temporarily suspended the engagement of new consultancy services. In addition, state corporations, boards and public sector undertakings have been asked to transfer the maximum possible share of their dividends to the state government to strengthen public finances. MADHYA PRADESH’S EARLIER MEASURES The latest measures come after Madhya Pradesh had already adopted austerity initiatives following Prime Minister Narendra Modi's call for prudent use of resources amid the global oil crisis triggered by the US-Iran conflict and the prolonged blockade of the Strait of Hormuz.