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Govt targets 5% savings from remaining operating allocation for 2022

Govt targets 5% savings from remaining operating allocation for 2022

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Treasury secretary-general Datuk Asri Hamidon

KUALA LUMPUR: The government will restructure allocations to achieve a savings target of at least 5.0 per cent from the remaining operating allocation for 2022 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 Restricted Warrant to inform on the amount of allocation that will be reduced.

According to the Malaysia Treasury Circular issued by the ministry, the global economic uncertainty, international geopolitical tensions, as well as the 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 are projected to reach RM77.7 billion compared with the RM31 billion allocation approved in Budget 2022.

Hence, Treasury secretary-general Datuk Seri Asri Hamidon said ministries/departments/agencies/federal statutory bodies/companies limited by guarantee (CLBG) must restructure all programmes/activities and manage their cash flow according to priorities by ensuring that no trade-offs are made for programmes/activities focused on the well-being of the people.

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While restructuring all ministries' organisations/departments/agencies are only allowed to increase service delivery efficiency on condition these do not 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/agency must strive to implement expenditure savings in utilities such as telecommunication, electricity and water and 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 have not been signed should be postponed except if special MoF approvals are needed. - Bernama


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