Govt needs to focus on trimming extravagant costs
Every time a new party comes into power, one of the most predictable things that gets spoken about is that of trimming costs, especially what would be considered as ‘extravagant’ in normal parlance. But all these talks bit dust few months later, is the bitter truth. CM Kumaraswamy has instructed chief secretary to ensure extravagance in terms of money should be brought down. This is the most welcome move. His commitment is indeed honorable.
New ministers splurging on renovation, new car, television, household goods, furniture and remodeling of even official residence is ugly but a normal practice by now. People do not hesitate to even spend crores of rupees to make their govt residences vastu complainant. This is sure to damage CM’s commitment to bring down exorbitant spending.
After the coalition government came into power, ministers have started conducting pooja, homa and havanas in their offices and have been renovating their places of residence. This work alone has cost Rs 20 crore by now. Though some ministers were part of the previous government as well, even they utilized money to carry out works at their house as per vastu or any other aspect they place their trust in. When BJP’s Jagadish Shettar was the CM, the chief whip of that party had demolished a wall in their office at Vidhana Soudha, and then built it again as per the vastu advice. Carrying out homa, Havana and other rituals in Vidhana Soudha is the ultimate insult we cause to the democracy. One may have them at their personal residences which is a closed space. Not only ministers, even officers renovate offices when they assume new posts, to give a modern touch to their workplace. New lamps, toilets and upholstery cost quite a bit of funds from the govt exchequer.
CM Kumaraswamy was chosen by people for his promise to waive off loans of the farmers. His govt has to collate resources to be able to execute this promise which would cost close to Rs 53,000 cr to the state exchequer. Just telling his ministers and officers to cut down on exorbitant costs would not do any good unless the CM instructs them in unambiguous terms as to what is allowed and what isn’t. CM has not occupied his official bunglow, and continues to live in his private residence in JP Nagar. He is travelling by Air India whenever the need for travel arises. The rest of the ministers too need to focus on staying simple on many fronts.
The tax money that gets spent on unnecessary costs and expenses does not send the right message about the new government to the people of the state. CM and his ministers are just caretakers of the whole state. They need to be transparent in all aspects of their tenure in the government. The lakhs and crores they spend on office renovation, should actually be reserved for welfare programmes of people.
The new government should not only focus on bringing down exorbitant costs but also ensure the number of Boards and Federations are also trimmed as per the need, since they are often seen as rehabilitation centres for those who want to use official power and resources without contributing much. There are nearly 90 Boards in the state, and about 75% of them are bleeding bad. They seem like white elephants that need a lot of money to maintain with no exact outcome or contribution to the state. The government needs to take a bold step to shut them down. The Academies and Authorities that do not contribute to any growth of the state whether in terms or identity, heritage or any other tangible aspect, also need to be dealt with iron hand. There is a lot of duplication in these small units that carry out similar work. Hundreds earn salaries through these bodies that serve no tangible purpose.
A strong decision regarding cutting down on expenses was taken when UPA government was in power. NDA government continued this practice as well. Officers were instructed not to travel by first class, and more such extravagant expenses were brought down.
If CM Kumaraswamy needs to waive off the farmers loans, he needs Rs 53,000 cr for the purpose and half of this needs to come from the central government. Whether central government contributes for this purpose or not, the state will have to carry out its commitment without fail. Hence all the unnecessary administration costs need to be brought under strict monitoring and the financial resource will have to be put together to provide relief to the farmers. A strong political will is needed to carry out this assurance the CM had given to his people. They need to shun extravagance and lead a simple life for the larger good, and to be appreciated by people of the state.
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Commercial LPG hike: Delhi restaurant owners warn of higher menu rates, job losses
New Delhi (PTI) A day after a 50 per cent rise in commercial LPG cylinder prices, Delhi's food business, with restaurant owners and street vendors have warned of higher menu rates, financial strain and potential job losses if the trend persists.
The price of commercial LPG was hiked by a steep Rs 993 per 19 kg cylinder, marking the third consecutive monthly hike amid rising global energy prices linked to the West Asia conflict.
For many in the restaurant industry, the spike has been both sudden and steep.
Manpreet Singh, honorary treasurer of the National Restaurant Association of India, said that eateries are already grappling with supply challenges alongside rising costs.
"There is a huge difficulty in getting these cylinders, and black marketing is also increasing in many unregulated sectors," he said, noting that prices that were once around Rs 1,600, often dropping to nearly Rs 1,300 with discounts, have now surged to between Rs 3,000 and Rs 4,000 per cylinder.
He further added that a medium-sized restaurant typically uses between two and five cylinders daily, making the increase particularly burdensome as costs mount.
Singh further said that as costs mount, smaller establishments could struggle to stay afloat. Instead, the association has advised restaurants to shift towards piped natural gas connections through Indraprastha Gas Limited as a more sustainable alternative.
"If this problem continues, PNG is the only long-term solution," he said, adding that temporary measures like coal offer limited relief due to slower cooking times and that it can largely be used only for tandoors.
Echoing similar concerns, Kabir Suri, owner of Mamagoto in Khan Market, said the impact is already visible across the industry. "There has been almost a threefold increase in cylinder prices for restaurants," he said, adding that rising fuel and logistics costs are compounding the pressure.
"If this continues, it will become a significant financial burden, and food prices will inevitably go up. Adding to this burden, higher fuel costs are also affecting logistics and transportation, making a price rise unavoidable. The extent of the impact will vary between small eateries and large chains depending on their scale," he said.
Global oil prices have surged nearly 50 per cent following disruptions in energy supply chains due to the West Asia conflict, pushing up commercial fuel costs and transport expenses.
A West Delhi-based restaurateur said they are trying to manage rising costs while keeping their staff secure. "We are trying to ensure that our staff, from kitchen workers to waiters, are paid on time and do not face immediate hardship," the owner said.
"We are a small restaurant with seating for about 20 to 25 people at a time. But if this continues for long, we will have to take difficult calls. There is only so much we can absorb, and menu prices will have to go up. We hope this does not continue for a longer period," he said.
Another restaurant owner in North Delhi, who did not wish to be named, said operational adjustments alone may not be enough. "We are checking our costs very carefully and trying to cut wherever possible, but if fuel prices remain high, it will eventually affect how we run the business," the owner said.
"Coal helps in tandoor cooking, but it takes more time," the owner further added.
The strain is even more acute among street vendors, many of whom operate on thin margins. A vendor in Saket said he had recently expanded his business, moving from a mobile cart to a rented outlet.
"I have a family to feed and more responsibilities now. Earlier, I managed with a moving cart, but after renting the place, expenses increased," he said. "Whenever cylinders were unavailable, I had to buy them at higher rates in the black market. Now even regular supply is too expensive, and if this continues, we may have to shut down," he added.
In Laxmi Nagar, another vendor said they are struggling to keep the business running. "Sometimes we even used domestic cylinders from home when supply ran out because we had to keep the stall running," he said, adding that rising costs leave little choice but to increase prices or bear losses.
On April 1, the rates of commercial LPG cylinders were hiked by Rs 195.50 per cylinder, followed by a Rs 114.5 hike on March 1, taking the total increase over the past three months to Rs 1,303. With the latest revision, a 19 kg commercial LPG cylinder now costs Rs 3,371.5 in Delhi, up from Rs 2,078.5 earlier.
The prices of domestic LPG cylinders used for household cooking have remained unchanged. They were last increased by Rs 60 per 14.2 kg cylinder on March 7 and currently cost Rs 913 in Delhi.
