23 August 2013
Bearing in mind the current state of the economy faced with a growing public debt, INR dearth and ever increasing current expenditure, the Fourth sitting of the Cabinet decided on adopting austerity measures to rein in unnecessary and excessive spending. As such, the Cabinet has decided to implement the following cost cutting measures until economic situation improves in the country:
1. Pay: As per recommendation of the National Assembly conveyed vide NAB-SP/2010/74, dated 16/12/2010, the pay scales for the Ministers of the Second Parliament was to be increased from Nu.78,000 – 1,560 – 85,800 to Nu.1,80,000 – 3,600 – 1,98,000 for the Prime Minister and Nu.1,30,000 – 2,600 – 1,43,000 for Cabinet Ministers and equivalent posts.
The Cabinet has decided not to adopt the new pay scales as recommended above. The existing pay scale of Nu.78,000 – 1,560 – 85,800 will be applied for the Prime Minister and the Cabinet Ministers with effect from 27th July 2013, the day His Majesty the Druk Gyalpo granted Dakyen to the Prime Minister and Cabinet Ministers. The next Pay Commission may review and suggest otherwise if necessary and recommend to the Government later.
2. Accommodation: Prime Minister has decided to live in his private residence and spare the official residence for continued use as a State Guesthouse. Cabinet Ministers will mandatorily occupy official residences at Lhengye Densa as it would involve payment of housing rent allowance otherwise.
3. Security: Security personnel for the Prime Minister and Cabinet Ministers shall be reduced to bare minimum and no pilot escort will be used for movements within Thimphu and Paro. The Ministry of Home & Cultural Affairs has been directed to revise the Security Protocol for VVIPs/VIPs, 2013 accordingly.
4. Ex-country Travel: Ex-country travel by the Prime Minister and Cabinet Ministers shall be kept to bare necessity. The Prime Minister and Cabinet Ministers will travel abroad only when it is absolutely necessary and that too with a bare minimum delegation even if financed by host countries or organizers. There should be no formal reception or see-off line up at the airport.
5. Chadri Arrangements: Chadri arrangements should be confined to events involving Royal Family Members, Zhung Dratshang and that are of national significance only. Pitching of tents, hoisting flags, arrangements of dancers, serving food, etc. during other events must be stopped. During visits of Cabinet Ministers to places outside Thimphu, there should be no elaborate chadri at the place of stay, whether hotel or guest house. Packed lunches for mid-way meals and tea to be arranged by the visiting team. The practice of Dzongkhag officials coming half-way to receive the officials should be discontinued. This applies to the visit of the Prime Minister as well. The Ministry of Home and Cultural Affairs is directed to revise the Chadri Protocol accordingly.
6. Hospitality and Entertainment: No excessive expenditure shall be incurred for extending hospitality and entertaining guests by the Cabinet Ministers. Government entertainment for official purposes should be reduced to bare essential. Wherever possible, lunches should be hosted instead of dinners, and number of government invitees should not exceed twice the number of guests. Food items containing local products should be promoted, instead of imported stuff. The Ministry of Finance is directed to revise the existing circulars/guidelines on government entertainments and hospitality and further streamline it.
7. Transport/Vehicle: The Prime Minister is entitled to one Land Cruiser and Cabinet Ministers to one Toyota Prado as exclusive duty vehicles with drivers and operation/maintenance costs. One Maruti WagonR car is provided for secretarial duty of the Ministers.
- Notwithstanding the above entitlements, the Prime Minister has decided to use the old vehicle (Toyota Prado) on his duty. The Cabinet Ministers will use one of the pool vehicles available with the ministries. No new vehicle will be procured by the Government until the economic situation improves.
- Maruti Wagon_R cars provided for secretarial duty of the Ministers will be returned for pool use in the ministries.
8. Domestic Staff: Prime Minister was provided five and Cabinet Ministers two domestic staff at residences. The Cabinet has decided not to avail this facility. The Pay Commission may study the need and suggest otherwise later. The DNP’s Maintenance Unit will look after the flower gardens and general cleaning of premises on regular basis.
9. Cabinet Secretariat: Cabinet Secretariat currently has 41 staff (2 Executive, 13 Officers, 2 Contract, 11 Support, 9 Operator and 4 GSP) as against some 52 approved posts. In addition, there were 4 political appointees and one Photographer on contract basis.
The Cabinet decided that there will be no political appointments made in the Cabinet Secretariat. Instead, Prime Minister will look into re-organizing and down-sizing the Cabinet Secretariat. Excess staff, if any, could be relieved off on transfer to agencies facing shortage of HRs.
The Cabinet hereby pledges to abide by all relevant laws of the land and consciously work hard towards curtailment of wasteful public expenditure. In doing so, the Government earnestly hope that all ministries, autonomous bodies, corporate agencies and also the private sector understand the gravity of the economic situation and encourage them to voluntarily come up with their own austerity measures. The Government and the people must collectively aspire to revive the economic situation through collective efforts and sacrifices.