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This is an archive article published on September 14, 2009

Our ministers aren’t the only ones feeling the pinch

Indian ministers and bureaucrats are not the only ones fretting about flying economy class or not staying in five star hotels,given that French President Nicolas Sarkozy is among the few who believes austerity measures “always fail”. However,others in meltdown-hit parts of the world have decided to put up with similar “inconveniences”. Pakistan Days after Pakistani […]

Indian ministers and bureaucrats are not the only ones fretting about flying economy class or not staying in five star hotels,given that French President Nicolas Sarkozy is among the few who believes austerity measures “always fail”. However,others in meltdown-hit parts of the world have decided to put up with similar “inconveniences”.

Pakistan

Days after Pakistani Finance Minister Shaukat Tarin proposed that the government “adopt austerity measures at the highest levels”,Aaj TV Online reported on September 5 that “the government is likely ban travel of chief executives and board members of public sector organisations by club/first class after serious reservations were expressed during a Cabinet meeting”.

Britain

The English seem to have fallen on bad times. Now,Tory boss,David Cameroon,is going around town pledging to cut the number of MPs by 65,slash their pay and perks,wipe subsidised food and drink off Westminster’s menus and chop down the fleet of ministerial cars if voters hand over 10 Downing Street to him. The British had given India a lesson in austerity by “treating” visiting Army Chief General Kapoor and senior officials to a £ 5.15-per-head meal consisting of “pastry,cheese and salmon” that was bought from a mass retail chain during his tour of the UK in August last year.

Mexico

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President Felipe Calderon has proposed to shut down three ministries—Tourism,Agrarian Reform and Public Administration — as part of an effort to pull up the economy. Besides,he has also announced a freeze on salaries for many federal employees.

Bulgaria

In early June,the Cabinet introduced new cuts of about 500 million Levs ($360.8 million) by slashing ministers’ pay by 15 per cent and freezing a planned 10 per cent hike in public sector salaries.

Anguilla

The tiny Caribbean British protectorate has drastically cut constituency,entertainment and telephone allowances for elected members of the House of Assembly. A reduction in their salary is also on the cards.

Philippines

Allegations that President Gloria Macapagal Arroyo and her party had “lavish dinners” during her latest visit to the US drew so much fire from the opposition,that the government was forced to declare that the “President’s visits abroad are exempted from the austerity measures considering the economic benefits they reap”. The government had earlier ordered a slew of measures,including directives to government agencies to slash their Maintenance,Overhead and Operating Expense (MOOE) budgets by 1.5 per cent.

Nigeria

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Umaru Musa Yar’Adua,President of Nigeria,one of Africa’s better economies,has ordered “tightening of belts and suitable measures to redirect the nation’s economy”. Late last year,the Nigerian government deferred procurement of new vehicles,stopped construction or acquisition of new office buildings,and reduced allowances for foreign trips for the President and all public officers by 50 per cent.

France

“I will not have a policy of austerity,” President Sarkozy told senators in June. “Because austerity policy always failed.”

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