Yatseniuk calls for severe budget austerity

Newly appointed Prime Minister Arseniy Yatseniuk has given instructions for the severest austerity measures to control budget spending by government officials.

"There will be neither state-paid cars, nor state benefits and privileges, no expenditures from the budget on ministers," he said when opening a government meeting on Thursday.

He also ordered the urgent preparation of a draft Cabinet resolution on tough controls on budget expenditures.

"The national budget won't sponsor any privileges and whims of government officials. It will be the highest level of budget fund savings," he said.