New Government Car Rules: Bureaucrats Can No Longer Claim Multiple Company Vehicles

The Center has revised its policy on official vehicles for bureaucrats and introduced the “One authorized officer, one official car” rule to avoid duplication of government vehicles and improve utilization of public funds, a Business Standard report said.

What are the new standards?

According to the revised rules, an officer who is already entitled to a staff car cannot be allotted another government vehicle just because he has been entrusted with another ministry, department, public sector undertaking (PSU) or autonomous body. Instead, they will have to use the company vehicle that has already been assigned to them.

The ordinance also prohibits central government officials from using vehicles belonging to PSUs, autonomous bodies or quasi-government organizations, except for official travel. The move closes a route that was often used to secure other company vehicles.

The government has clarified that the entitlement relates to the official, not the number of posts they hold. As a result, holding multiple appointments will no longer qualify an officer for multiple government vehicles.

In addition, the Ministry of Finance has directed ministries and departments to ensure that vehicles that are no longer in regular use are kept in safe custody and are not used for unauthorized purposes.

Why did the center revise the policy?

According to the Ministry of Expenditure, the new framework is intended to improve administrative efficiency and reduce unnecessary expenditure on official transport by making better use of government resources.

The revised norms have been communicated to all ministries and departments through a circular issued on Monday, according to The Times of India.

The guidelines are based on a memo from the Department of Expenditure’s head office issued in September 2022. Under the rules, authorized officers can use company cars for personal journeys of up to 500 km per month, provided they pay ₹3,000 and waive their monthly transport allowance.

According to Business Today, travel above 500 km per month will be charged ₹24 per kilometer in addition to ₹3000 monthly installment.

The government reiterated that all ministries and departments must strictly adhere to the revised norms.

The changes are part of a broader drive by the center to cut spending and strengthen administrative discipline across ministries and unions. By limiting officials to a single government vehicle, regardless of the number of functions they hold, the government wants to eliminate unnecessary duplication and reduce the cost of maintaining its fleet.

All ministries and departments have also been directed to review the existing allocated vehicles to ensure more efficient use of government resources.