Austerity Plan to Freeze Compensations, Grants of Employees

The country needs to be more cautious in spending funds, particularly those related to management, which they have reached the “crescendo” in 2012, Finance Minister Karim Djoudi says.

The reduction of public expenditure will have a great impact on economic growth, jobs and income, and did not rule out the government’s resorting to a scheme of ‭austerity, which includes freezing the second part of grants ‭ ‬ and compensation about users of the public sector, and the suspension of what ‭remain of the five years plan’s projects. ‬

Djoudi said in a press statement, following the conclusion of the spring session of the National Assembly; “There must be a feeling of awareness about the need to have a more cautious approach in spending money, particularly those of the managemen, and those related to wages of public employees, as we’ve come to the peak.”

“It comes to the only “cautious” approach, because “a significant reduction of the investment expenses will have an impact on the economic growth, jobs and incomes. It’s not about a pure automatic work, but about decisions regarding the expenditure that can be taken, not on a regular event, but rather on the basis of our observations in the medium term. The reduction of operating expenses in 2013 will be “automatic” because arrears of compensatory regulations and basic laws are non-renewable”, the minister added.