Facebook Twitter Google Plus Vimeo Youtube Feed Feedburner

ROS LBoard 1

Govt seeks RM13b addition to budget

 | June 14, 2011

The money is to be spent in the first half of the year, Awang Adek tells Parliament.

KUALA LUMPUR: The government tabled in Parliament today a supplementary supply bill seeking more than RM13 billion for additional spending amid efforts to trim down its record budget deficit.

The bill, tabled by Deputy Finance Minister Awang Adek Hussin after question time, asked for an addition of RM13,186,713,000 to the RM162.8 billion 2011 budget. He said the extra amount was for the first half of this year.

Prime Minister Najib Tun Razak has been under pressure to cut the government’s public debt, which stood at 7.6% of GDP in 2009, the highest since 1987.

His administration managed to reduce the figure to 5.6% in 2010 and aims to shrink it by 0.2% this year, forcing it to cut subsidies on essential goods like sugar and diesel, an unpopular move that comes amid inflationary pressure caused by soaring global food and commodity prices.

Potential voter backlash has forced him to halt any plans to cut subsidies on RON95 petrol despite soaring global oil prices.

The government is expected to spend close to RM21 billion from the initial RM10 billion allocated for subsidies this year.

Much of the supplementary funds sought today are streamed to cover transfer payments worth RM6 billion under the Treasury General Services.

The social sector came in second with RM3.62 billion, with education and training under the Education Ministry accounting for RM1.54 billion.

RM2.4 billion will be spent on the economic sector, followed by general administration, RM639 million and security RM530 million.


Readers are required to have a valid Facebook account to comment on this story. We welcome your opinions to allow a healthy debate. We want our readers to be responsible while commenting and to consider how their views could be received by others. Please be polite and do not use swear words or crude or sexual language or defamatory words. FMT also holds the right to remove comments that violate the letter or spirit of the general commenting rules.

The views expressed in the contents are those of our users and do not necessarily reflect the views of FMT.