PUTRAJAYA: The entertainment allowances of ministers and deputy ministers will be slashed and their paid holidays will now be limited to local and Asean destinations.

These as well as several other steps, including a freeze on new government posts and assets purchase, would save the Government RM2bil.

The slashing of allowances and limitation on paid holidays take effect on July 1. Even the Prime Minister and the Deputy Prime Minister will not be spared this new ruling.

The Prime Minister currently enjoys a monthly entertainment allowance of RM18,865 while his deputy gets RM15,015. Other ministers and deputy ministers are given RM12,320 and RM6,000 respectively.

For the paid holidays, Cabinet members will not be allowed to claim for more than a week’s holiday.

Datuk Seri Abdullah Ahmad Badawi said these measures “will not be the first or the last; many other announcements will be made by the Government”.

“The savings will be channelled to subsidies for low-income groups,” he said after chairing the first National Inflation Council meeting at his office here yesterday.

“We are sensitive to the hardship faced by the people as a result of the recent increase in fuel prices.

Everybody will have to be thrifty in these difficult times, including the Government.”

Besides the freeze on new government posts and the purchase of assets like cars, furniture and computers, other measures to be taken are limiting the number of workshops, seminars and conferences held at hotels and postponing all renovation works for government offices.

The Government will also cut down on the number of functions like the opening of offices, prize-presentations as well as disallow attire specifically made for an event.

“There is no point for a special outfit because it’s wasteful.

“In line with this, a 10% cut will be imposed on expenses within departments.

Much of the cut will involve promotional and campaign activities.”

The measures became effective yesterday in a circular issued by the Treasury to all agencies and departments.

The freeze on new posts, however, does not cover critical sectors like education, health and enforcement, and those dealing with the delivery of public services and capable of increasing the country’s revenue.

Restructuring of agencies and departments will also be put on hold, except if this is to reduce the number of workers or which does not involve the creation of new posts.

Official overseas trips will be limited to important international or inter-governmental meetings, with not more than three officers sent, and even then only those directly involved.