A partial review of the 2012 public sector budgetary allocations approved in the recent 2012 budget will see all ministries, departments as well as government entities will see an aggregate reduction of 0.59 per cent of the gross domestic product from the in the approved 2012 recurrent budgetary allocations, the Finance Ministry said.

It said in a statement that expected outcome is to result through savings emanating from restraints in recruitment (0.1% of GDP), overtime (0.04% of GDP), operational and maintenance expenditure (0.07% of GDP), programmes and initiatives (0.21% of GDP) and government entities (0.17% of GDP).

As announced by the Prime Minister earlier today, ministers will lead by example and will give up their Parliamentary honoraria in 2012 and 2013.

All approved capital budgetary allocations shall remain unchanged.

The ministry said was being done for the country to be better placed to counteract any impact which may arise as a result of increasing risks in the international economic situation as well as developments within the public finance sector.

The continuing economic and financial troubles in major world economies were fuelling high levels of instability in economies worldwide, it said.

It added that the government has consistently taken responsible decisions that have ensured financial and economic stability. This has resulted in the safeguarding of investment levels and job creation.

But despite efforts at European level and by individual European member states, this turbulence was showing no signs of subsiding.