Critical projects will go on as planned, says Tengku Zafrul

 

Finance minister Tengku Zafrul Aziz says no projects have been delayed or cancelled thus far. (Bernama pic)

PETALING JAYA: While the country has to fork out more for subsidies, projects that are critical to the economy will continue to be implemented, says finance minister Tengku Zafrul Aziz.

Last week, economic affairs minister Mustapa Mohamed said the government wanted to cut down on public expenditure by cancelling or deferring projects to enable more funds to be allocated for welfare programmes.

In a written parliamentary reply, Tengku Zafrul said no projects have been delayed or cancelled so far, with the finance ministry still identifying cost-cutting measures in line with a treasury circular on July 14.

“Projects that are critical to the economy and the people will continue to be implemented,” he told Semporna MP Shafie Apdal.

“Even if a project is delayed, preliminary work such as the preparation of designs, land acquisition, and procurement planning will continue.”

He explained that the increase in the amount of aid and subsidies, especially for fuel, cooking oil, electricity, poultry and eggs, has contributed to an increase in government expenditure.

While Budget 2022 allocated RM31 billion for aid and subsidies this year, he said, the actual amount is projected to reach RM77.7 billion.

It is expected that the additional revenues related to petroleum and commodity revenues will not be sufficient to cover the increase in aid and subsidy expenditure, he said.

Tengku Zafrul said taking into account the need for additional allocation for assistance and subsidies, the finance ministry is targeting government savings of at least 5% of the remaining operating expenditure allocated to all ministries for this year.

He said a July 14 treasury circular titled “Guidelines on Public Expenditure Saving” will be adopted by all ministries, departments and agencies to ensure optimised public spending, which will help the government meet its savings target, with the savings to be used for improving welfare programmes and the generation of economic activities.

Shafie had asked about the government’s efforts to cut down on operational costs and the list of projects that have been cancelled or deferred, with the money to be used for targeted subsidies. - FMT