Malaysia to cut spending of officials
Malaysian Prime Minister Najib Razak has announced new measures to curb public spending, including a 10 per cent cut in the entertainment allowance for ministers.
The 11 measures, which also freeze applications to renovate government offices, will start on January 1, 2014, state news agency Bernama reported on December 30, citing a statement by Najib.
The Southeast Asia nation is under pressure to rein in spending and boost tax collection to tackle its high budget deficit and fast-growing debt pile. Earlier in December, Najib announced a 15 per cent increase in a power tariff starting in 2014.
Having earlier given handouts and pay increases for civil servants to woo voters, Najib is adjusting his focus to improve government finances and avert a credit-rating downgrade. In October, he scrapped sugar subsidies and unveiled plans for a consumption tax in 2015.
The latest measures to cut spending include reducing the use of event-management companies, and decreasing the awarding of souvenirs and the amount of food and drinks at some government events. Some civil servants will only be allowed to travel on economy class on domestic flights, while electricity utility costs at all government offices will be reduced by 5 per cent, the report said. It didn’t specify how much money the measures are expected to save.
[caption id="attachment_19338" align="alignleft" width="270"] No more business class flights for Malaysian officials - at least on domestic flights[/caption] Malaysian Prime Minister Najib Razak has announced new measures to curb public spending, including a 10 per cent cut in the entertainment allowance for ministers. The 11 measures, which also freeze applications to renovate government offices, will start on January 1, 2014, state news agency Bernama reported on December 30, citing a statement by Najib. The Southeast Asia nation is under pressure to rein in spending and boost tax collection to tackle its high budget deficit and fast-growing debt pile. Earlier in...
Malaysian Prime Minister Najib Razak has announced new measures to curb public spending, including a 10 per cent cut in the entertainment allowance for ministers.
The 11 measures, which also freeze applications to renovate government offices, will start on January 1, 2014, state news agency Bernama reported on December 30, citing a statement by Najib.
The Southeast Asia nation is under pressure to rein in spending and boost tax collection to tackle its high budget deficit and fast-growing debt pile. Earlier in December, Najib announced a 15 per cent increase in a power tariff starting in 2014.
Having earlier given handouts and pay increases for civil servants to woo voters, Najib is adjusting his focus to improve government finances and avert a credit-rating downgrade. In October, he scrapped sugar subsidies and unveiled plans for a consumption tax in 2015.
The latest measures to cut spending include reducing the use of event-management companies, and decreasing the awarding of souvenirs and the amount of food and drinks at some government events. Some civil servants will only be allowed to travel on economy class on domestic flights, while electricity utility costs at all government offices will be reduced by 5 per cent, the report said. It didn’t specify how much money the measures are expected to save.
