Government adopted package of ten or so austerity measures at today’s session.
 
Measures envisage 10% decrease of salaries of the Prime Minister, Ministers, Deputy Ministers, as well as appointed state officials by 2011. Freezing of salaries in the public sector is extended to September 2012.
 
In the course of 2010 and 2011, public enterprises will have to allocate 80% of their profit in the Budget. During the same period, public enterprises are not allowed to distribute annual vacation allowance and bonuses to the employees.
 
Fees for members in administrative and supervisory boards are also reduced by 30% during 2010 and 2011. At the same time, working group will be established to analyse the possibilities to optimize bodies within the respective Ministries, such as Agencies, Administrations, Funds, Bureaus, Centers, etc., so as to determine which one could operate as Departments within the Ministries. Hence, costs of administrative and supervisory boards would be additionally reduced.
 
In line with the measures, per diem for travelling in the country will be suspended, while per diem for travelling abroad will be reduced by 30% by the end of 2011. Ministers and Deputy Ministers fully relinquish per diem during this and the next year, and the same is recommended to all Directors of budget users.
 
Eligible charges for use of mobile phones will be reduced by 30% as of 2011 inclusive, and limits on fixed phone charges will be introduced.
 
Appanage will be reduced compared to the existing decision, on the basis of which 12-month appanage was awarded, regardless of the duration of the office held by the official. According to the measures, if a person holds office up to 6 months, such person will be awarded 3-month appanage. If a person holds office between 6 and 12 months, he/she will be awarded 6-month appanage. If a person holds office from 12 to 24 months, such person will be awarded 9-month appanage, and if a person holds office more than 24 month, he/she will be awarded 12-month appanage.
