Finance ministry official says each ministry is required to restructure their departments’ spending to reduce unnecessary expenses.
JOHOR BAHRU: A circular on a mandatory austerity drive for all 37 ministries, following the 2016 Budget recalibration, will be issued and distributed this month.
The Finance Ministry’s National Budget Office chief deputy director, Mohd Harzi Shah said with the issuance of the circular, each ministry was required to restructure their departments’ spending, taking into consideration various factors including cutting down on ceremonial events and buying flowers for any occasion.
“We encourage them to reduce unnecessary expenses. More importantly, the reduction must not affect their service to the people,” he told reporters after briefing the public on the 2016 Budget at a Johor Information Department event held here, yesterday.
He said this year, the government targeted that all ministries achieve savings of RM7 billion to RM9 billion, due to the economic uncertainties facing the country.
He added that overdependence on crude oil sales revenue and commodities had created economic vulnerability as the price of these resources had decreased sharply in the current market.
However, he said, the payment of emoluments, pension, salaries and annual salary increments for civil servants would be maintained.