Colombian gov't introduces austerity measures to curb public spending

Colombia's Council of Ministers Monday decreed new austerity measures to reduce public spending amid the turbulent economy of the South American country that depends on prices of international markets.

Led by President Juan Manuel Santos, the first council meeting of the year took place on Monday at the Presidential Palace in Bogota. He said in a speech the aim was to reduce public spending without affecting the social programs that are a priority during his tenure.

"The national industrial growth shows we are on a good path, although we have to keep the belt tight. Austerity is a priority," Santos said on social media after the meeting.

One of the measures taken is that Ministers of State purchase economy class tickets for domestic flights in order to avoid extra costs.

Also, the council decided that all government advertising and public events will have to first pass through the Presidency Communication Office to decide whether they are necessary or not, and must be approved by the Presidential Palace Office.

Santos said these "smart austerity" measures represent savings worth around 3 million U.S. dollars, while recalling that in the last Budget Law, he ordered that public agencies cut 10 percent of their spending to generate additional savings.

Colombia's economy is unstable due to declining prices in international markets, especially the oil price, the rising inflation rate and the severe drought affecting the most productive farming regions. Endi