Moving ahead with its cost-cutting measures amid a slowing economy and falling revenues, the Department of Expenditure has banned creation of new posts in all Central ministries, departments and statutory bodies. In an office memorandum on Friday, the department, which comes under the Ministry of Finance, said that the ban will cover all creation of posts under powers delegated to any organisation, regardless of the source of such authority or power. "There will be a ban on creation of new posts, except with the approval of the Department of Expenditure, in Ministries/Departments, Attached Offices, Subordinate Offices, Statutory Bodies and Autonomous Bodies," it said.

The order further said that if any posts have been created after July 1 under delegated power or authority, without approval of the Department of Expenditure and have not yet been filled, then such posts shall not be filled. "If it is deemed absolutely essential to fill them, proposals may be sent for approval of the Department of Expenditure," it said. The Secretaries of the ministries and departments would be charged with the responsibility of ensuring compliance of the directive.