Putrajaya has finally unveiled specific measures to cut spending in the government through a circular released by the treasury amid shrinking revenue due to a collapse in oil prices.

"The regional and global economic development has affected the federal government's financial position due to impacted government revenue.

"To ensure the fiscal target can be achieved, measures to optimise government spending is being comprehensively implemented to ensure the efficient and effective management of resources," read the circular which was effective March 1.

Among the measures include the abolition of government positions that have not been filled for more than two years and reining in on overtime allowances by requiring an instruction in writing beforehand.

The circular also prohibits the creation of new government position with the exception if there is a trade-off or is done through re-deployment, with no additional financial implication.

However, it allows for the creation of new positions deemed "critical" in the fields of education, health, security, enforcement, and revenue collection, but said it must be done "strictly".

Putrajaya is even offering incentives to government departments who successfully implement measures to increase the government's revenue or savings.

"Ministries, departments and agencies that succeed in significantly increasing the government's revenue or reducing operational costs will be considered for appropriate incentives through the annual budget," it said.

Other measures include:

- 10 percent cut to ministers and deputy ministers' entertainment allowances.

- Domestic trips should only be made if necessary and with minimal officers.

- Overseas trips only allowed if provided for in budget or with cabinet approval.

- Officials encouraged to delegate representation overseas to Malaysian embassies in those countries, instead of personally going.

- Ministers, deputy ministers, secretaries-general, and department heads allowed to only bring one officer on overseas trip or two if Malaysia does not have an office there.

- Government heads only allowed a maximum of three official overseas trips a year and two for regular officers.

- Overseas courses and trainings are not allowed unless it is technical in nature and there are no such expertise in Malaysia, or is funded by other countries.

- Flights under five hours must be economy class and business class for above five hours.

- Government departments must reduce utility usage bill.

- Renting or renovating new premises is prohibited unless it can reduce existing costs.

- Government functions should be limited and held modestly.

- Giving out souvenirs is not allowed but if needed, should be limited to books, local crafts, local food, or agency's own products.

- All carnivals, expo, and exhibition overseas are to be postponed unless given exemption by cabinet.

- Sponsorships and advertisement in media should be reduced.

- Projects that require significant imported components should be postponed.

- Government grants to industries should be scrutinised.