Govt targets 5pct savings from remaining 2022 operating allocation
This is to help finance part of the additional expenditure relating to subsidies for the welfare of the people.
The Ministry of Finance (MoF) hence will finalise and issue a...
The government will restructure allocations to achieve a savings target of at least 5.0 percent from the remaining operating allocation for 2022.
This is to help finance part of the additional expenditure relating to subsidies for the welfare of the people.
The Ministry of Finance (MoF) hence will finalise and issue a Restricted Warrant to explain the number of allocations that will be reduced.
According to the Malaysia Treasury Circular issued by the ministry, the global economic uncertainty, international geopolitical tensions, as well as steep increase in global commodities and food prices have caused high inflationary pressures.
Therefore, the government is taking measures to implement subsidies for essential goods as well as price control to reduce the inflationary impact.
The expenditure for subsidies and assistance is projected to reach RM77.7 billion compared with the RM31 billion allocation approved in Budget 2022.
Hence, Treasury secretary-general Asri Hamidon said ministries, departments, agencies, federal statutory bodies, and companies limited by guarantee (CLBG) must restructure all programmes and activities.
He said they must manage their cash flow according to priorities by ensuring no trade-offs are made for programmes or activities focused on the people’s wellbeing.
Meanwhile, restructuring the organisations, departments, and agencies under the various ministries will only be allowed for increasing service efficiency, as long as they don’t involve an additional number of jobs or financial implications.
"Restructuring priorities for organisations need to focus on reducing duplication of functions whether within the organisation or outside.
‘’The establishment of statutory bodies/CLBG/new entities are not allowed,’’ said Asri.
He said each ministry, department, and agency must strive to implement expenditure savings in utilities such as telecommunication, electricity, and water.
He added that these must be monitored and reported to the ministry's Financial and Accounts Management Committee (JPKA).
Asri said all expenditures for new asset procurement that are not urgent and not yet ordered or signed should be postponed except if special MoF approvals are given.
- Bernama
