Austerity is now the buzzword in official circles in India. On  September 7, the union finance ministry directed all ministries and departments to reduce non-plan expenditure by 5 to 10 per cent in the current financial year in view of the economic downturn and the drought. The underpinning was that the recession had forced the government to initiate an economy drive. Perquisites are history, austerity is the new agenda for babus, at any rate till the good times roll again.

 Therefore, ministers and politicians must first set an example - by returning to more socialist ways. Shashi Tharoor and his boss were, rather discourteously, asked to shift from the five-star hotels to a government bungalow in Lutyen’s Delhi though not a single paisa had been spent from the government exchequer for their stay in five-star comfort. There was considerable fuss over the minister of state tweeting about travelling in what he called ‘cattle class’ which is a well-known colloqualism for travelling in the economy class. Congress Party president and India’s most powerful woman Sonia Gandhi shunned the executive class and travelled economy; son Rahul took a train to Ludhiana that got stoned en route. And for finance minister Pranab Mukherjee, economy is the only favoured class in which he is accustomed to travel.

Finally, the corporate affairs minister Salman Khursheed issued a veiled threat that the government was thinking of regulating the "vulgar" salaries and perks currently enjoyed by some private sector CEOs. Rahul Gandhi joined the bandwagon: "I am always austere. Politicians should always be austere." None disagrees with him; they should lead by example. But facts point to a different story.

The external affairs minister and his deputy were ejected from a five-star-hotel to move to a bungalow which would command a rental of 6 million rupees (US$129,254) a month in terms of the market value. The Left parties allowed such luxurious bungalows, allotted to MPs, to house the offices of their frontal organisations, such as the DYFI and Citu.  And the hidden cost was borne by the state exchequer for five years.

The circular on austerity measures envisaged cost-cuts in domestic and foreign travel, advertising, publicity, office expenses, seminars and conferences and purchase of vehicles. Exhibitions and seminars abroad will be discouraged, while conferences in five-star hotels have been banned. Also ruled out is first-class air travel at government expense. Purchase of vehicles has been curbed.

Normally, such directives escape the attention of the general public. But our politicians are ever so anxious to demonstrate before the electorate their concern for the economy and the extent of sacrifice they are prepared to make. Hence the party diktat followed; the ministers and MPs will have to gear up for a 10 per cent cut in their monthly salaries.

How much does this work out to? On an average, for a minister it comes out to 1,800 rupees ($39) and for an 1,600 rupees ($34). According to a modest estimate, a minister’s salary, allowances and perks total approximately 11 million rupees ($236,966) per month. A cabinet minister is entitled to a 16-member personal staff and junior ministers 13. In addition, they are provided with security guards, a fleet of at least three cars with unlimited petrol, unlimited domestic and international phone calls and, of course, free train and air travel. And these freebies, including spacious accommodation, are not subject to the Fringe Benefit Tax which the CEOs of the private sector have to pay.

For an Indian politician, a five-year span is a long enough period to do pretty well for oneself. If a Haryana MLA can add 50 million rupees ($1.07 million) to his net worth during this period, it does not require a statistician to assess the wealth of a minister or an MP at the conclusion of his tenure. The use of official perquisites for private gain at the cost of the public exchequer is a common phenomenon though our politicians routinely reel off slogans of austerity for public consumption.

Meanwhile, US President Barack Obama takes his children to school in his own car. And how many chief ministers, or ministers of a state or the Centre can emulate Indian Prime Minister Manmohan Singh who drives his Maruti to renew his driving licence?

Salaries, allowances and perquisites must always be linked with performance. While reviewing the first 100 days in office of UPA II, the Prime Minister expressed his unhappiness over the record of some of his colleagues. The railway minister told the media that most of the ministers of state were yet to be assigned any work. The frequency with which she directs Trinamul’s ministers of state to visit West Bengal, there to appear in the local television channels, must make one wonder whether they are rendering any real service commensurate with their ministerial position in the national government.