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April 6, 2023
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Petro signed austerity plan decree: how will it reduce costs?

Petro denies that his position on the Metro is blackmail

through the Decree 444 of 2023the National Government established the austerity plan for this year, with which it seeks to reduce the operating expenses of State entities.

(This would be the Government’s austerity plan to save in 2023).

The decree also issues orders for the reduction of expenses of regional and local entities in aspects such as hiring personnel, publicity, per diems and other additional remunerations such as vacations, among others.

This decree was signed by President Gustavo Petro and the Minister of Finance, José Antonio Ocampo, and It also seeks to regulate the hiring processes of the personnel plant.

The measure will apply to the contracting modality for the provision of services, in which it must be clearly justified why the services of the person to be contracted are required.

In addition, the costs of leasing headquarters for the operation of entities in different territories of the country will be reduced, thus promoting teleworking where possible.

(The austerity plan for 4 billion pesos proposed by the Government).

“Entities must promote and give priority to virtual and non-face-to-face meetings on activities that involve physical displacement of public servants, so that these are minimal and fully justified,” says the sixth article of the document.

For the case of per diemthe decree defines that “When all the expenses for maintenance and accommodation generated by the commission of services are assumed by another body or entity, there will be no place to pay per diem”.

(Austerity and debt, the two biggest threats to the economy).

“Any commission of services and studies abroad of public servants of entities that belong to the executive branch of the national order, must justify the requirement of physical presence and must have the prior authorization of the Administrative Department of the Presidency of the Republic” , add the decree.

For the cases of securitythe current schemes of the public servants of the Government will be reviewed, to establish if it is necessary to reduce them.

In case of social events, virtuality will be privileged. However, when they must be in person, they will be carried out in State facilities so that additional leasing costs are not incurred.

Snacks and lunches, and stationery costs will also be rationed. The use of technology will be appealed to avoid the consumption of paper.

The Government also prohibited parties, commemorations of entities or celebrations with resources from the National Budget, as well as corporate gifts, promotional items and decorations using public money.

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