The governmet has issued an order to all ministries and state sector entities, to cut expenditure by 7 percent, improve effecicency and innovation and reduce wastage.
But the Prime Minister's announcement seems to have struck a nerve for the labour movement.
This morning the PSA and NATUC say although the PM said the new measures do not mean workers will lose jobs, the unions are still concerned.
PSA President Watson Duke says he expects that there will be jobs cuts.
He also says that as it stands state companies and departments are under-resourced.