The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Putrajaya seems to be eager to show to the citizens that they are serious about cost cutting.
The Malaysian government unveiled 53 measures to cut cost.
Some of it are the freeze on hiring of new staff, stricter controls on overtimes, curbs on various expenses and a minimum 30% cut in
spending on all government-organised events. The measures which took effect on March 1st includes a directive to all agencies to cut
down the number of uniforms issued to officers from three sets per year
to two.
The
measures are listed in a Treasury Circular titled "Guidelines on
Measures to Optimise Government Spending" which was uploaded on the
Finance Ministry website. The full list of measures can be accessed
online at the ministry's website at http://1pp.treasury.gov.my/makluman/pindaan/217
The circular ordered all ministry secretaries-general, department heads, heads of statutory bodies, chief executives of companies limited by guarantee and other agency heads who receive allocations from the government to carry out all the measures outlined.
This was in response to the regional and global economic slowdown that have affected the financial position of the government as revenue collection has been impacted.
"To ensure that fiscal targets which have been set are met, measures to optimise government spending is to be implemented across the board so resources can be managed more efficiently and effectively," a circular on this said.
It added that the creation of new positions is not allowed except in critical areas by redeploying existing staff or using a "trade off" method. Vacant positions not filled for more than two years will be abolished.
On overtime, prior written approval by the employee's boss is now required.
A 10% cut in the entertainment allowances for ministers and deputy ministers that was introduced on Jan 1, 2014 is maintained in the circular.
In addition, the circular states that ministers, deputy ministers, ministry secretary-generals and approved department heads can only bring one officer with them on overseas working visits to countries where Malaysia has a mission office. In countries with no Malaysian mission, no more than two officers can be brought along.
When traveling, civil servants will be allowed to buy their flight tickets and book their own hotel rooms to get the cheapest rates.
The circular also directs ministries to limit their number of events, conferences, seminars and workshops and said steps must be taken to cut costs.
The Malaysian government unveiled 53 measures to cut cost.
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| 53 cost cutting measures |
The circular ordered all ministry secretaries-general, department heads, heads of statutory bodies, chief executives of companies limited by guarantee and other agency heads who receive allocations from the government to carry out all the measures outlined.
This was in response to the regional and global economic slowdown that have affected the financial position of the government as revenue collection has been impacted.
"To ensure that fiscal targets which have been set are met, measures to optimise government spending is to be implemented across the board so resources can be managed more efficiently and effectively," a circular on this said.
It added that the creation of new positions is not allowed except in critical areas by redeploying existing staff or using a "trade off" method. Vacant positions not filled for more than two years will be abolished.
On overtime, prior written approval by the employee's boss is now required.
A 10% cut in the entertainment allowances for ministers and deputy ministers that was introduced on Jan 1, 2014 is maintained in the circular.
In addition, the circular states that ministers, deputy ministers, ministry secretary-generals and approved department heads can only bring one officer with them on overseas working visits to countries where Malaysia has a mission office. In countries with no Malaysian mission, no more than two officers can be brought along.
When traveling, civil servants will be allowed to buy their flight tickets and book their own hotel rooms to get the cheapest rates.
The circular also directs ministries to limit their number of events, conferences, seminars and workshops and said steps must be taken to cut costs.
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