The government has stated that it will restructure allocations to achieve a savings target of at least 5 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.
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 is projected to reach RM77.7 billion compared with the RM31 billion allocation approved in Budget 2022.
Treasury secretary-general Datuk Seri Asri Hamidon said ministries/departments/agencies/federal statutory bodies/companies limited by guarantee (CLBG) must restructure all activities and manage their cash flow according to priorities by ensuring that no trade-offs are made for programmes focused on the well-being of the people.
While restructuring all ministries’ are only allowed to increase service delivery efficiency on conditions that 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 and department 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 signed should be postponed except if special MoF approvals are given.
