On Monday afternoon, Prime Minister Francisco Pascual Obama Asue, summoned the majority of the new general secretaries and economic heads of all ministries, to discuss with them about the urgent need to adopt a strategy of economic austerity and avoid making expenses (which would be classified as inappropriate), in addition, reducing them to the minimum possible to avoid significant cash outflows.
With the application of this policy, the basic scheme of the Government lays in the greatest possible reduction of public spending and increase in the tax burden on citizens and companies, that is, increasing the level of public collection and minimizing spending by the State in order to achieve the lowest possible public deficit.
Due to economic recession and the response of different governments to the crisis, this concept has special relevance today, especially when it comes to describing the new economic policies that are being applied.
Obama Asue mentioned specific aspects such as compliance with the income expectations set for each ministerial department and avoiding excess spending by their respective ministries, where the urgent need to eradicate corruption within the Public administration is becoming one of the greatest stumbling blocks for the government ; For this reason, The head of the administration could not ignore it and warned about the practice of this deeply-rooted crime.
It is common for a government, threatened by a situation as such this to act by activating restrictive political and economic measures. By this, austerity allows states to face extreme situations, helping to improve national accounts and avoid, to a certain extent, bankrupt
According to Francisco Pascual Obama Asue, An increase in the level of taxes would also cause a higher level of collection which, added to the decrease in the level of spending on public matters, can reduce the deficit considerably and may even lead to an appearance of public surplus.