As part of the new austerity measures to optimise government spending, new restrictions will be imposed on allowances for civil servants and recruitment for government positions. - NSTP file pic, for illustration purposes only
As part of the new austerity measures to optimise government spending, new restrictions will be imposed on allowances for civil servants and recruitment for government positions. - NSTP file pic, for illustration purposes only

KUALA LUMPUR: As part of the new austerity measures to optimise government spending, new restrictions will be imposed on allowances for civil servants and recruitment for government positions.

Treasury secretary-general Datuk Seri Asri Hamidon in a circular on July 14 addressed to heads of ministries and departments has listed out guidelines on expenditure and the financial conduct of government agencies to optimise government spending.

Asri Hamidon highlighted that Putrajaya spent RM530 billion in response to the economic effects of Covid-19, but that global uncertainty and geopolitical tension had accelerated inflation and the prices of food and commodities.

The government, as a result, was forced to implement subsidies and price controls for essential goods, including fuel, cooking oil, electricity and chicken.

"Aid and subsidy expenditure is projected to reach RM77.7 billion compared to the RM31 billion approved in 2022 Budget. Hence the government has to implement cost-saving measures to assist in covering part of the additional subsidy-related expenditure for the welfare of the people," he added.

The austerity measures also cover operations expenditure for ministries, departments, agencies, statutory bodies and government companies, which require the relevant officers to reevaluate activities and programmes.

The circular also states that the creation of new job positions are prohibited, with the exception of the redeployment of staff and without the implication of additional monies.

Whereas, new positions in critical sectors such as education, health, security and revenue collection can only be created under stringent supervision.

There would also be a ban on the formation of new public entities or companies.

Overtime allowances, meanwhile, would be scrutinised to ensure it is for urgent duties.

The measures also outlined that transfer of officers for outstation posting and official travels within the country would be limited only to essential tasks.

In this regard, officers will be allowed to purchase the cheapest economy class flight tickets available, instead of the current requirements under the air travel allowances for civil servants.

Similarly, all civil servants regardless of grades, can only fly economy class for such purpose.

Other conditions for overseas travel include limiting the number of participants to foreign summits, with the officers attending the trips allowed to book accommodation based on the most affordable prices.