"Business travel is not essential.It is a comfort and a luxury and not a right," she said in a WhatsApp message to mediapersons after an urgent meeting with chief secretary Ashwin Kumar.
"If we travel in economy class, we can save for the people in the current circumstances when we need every rupee," Mr Bedi said.
A ban has been imposed with immediate effect on business class air travel by officials, she said.
The former IPS officer said in the message that various measures were finalised at the meeting to overcome the financial constraints faced by the administration.
She issued "immediate instructions" to all secretaries of the territorial administration asking them to strictly comply with the instructions.
"Or else the exercise of tenders becomes futile in the event of funds not being available. This would also ensure prevention of blamegames which only causes confusion in the minds of the people," the Lt governor said.
She contended that these measures would be followed in the interest of financial administration of the territorial government.
The Secretary to Finance here has been duly informed about the measures and all government funded societies have also been directed to adhere to "principles of financial prudence lest the Heads of Departments should become accountable."
The objective is to save every rupee for essential expenses of the people of Puducherry, she added.