It is the time for everyone to put their personal and political interest aside and come together as nation is in peril, mainly due to unavoidable external factors such as the sundry of global economic recession, escalating geo-political conflict, low global demands, sluggish global financial and capital markets.
Najib: 2016 Budget to be adjusted in line with global economic developments
[VIDEO] 8 JANUARY 2016 @ 9:56 AM
PUTRAJAYA: The 2016 Budget will be adjusted soon, taking into account the current global economic developments.
Announcing this today, Prime Minister Datuk Seri Najib Razak said the strengthening of the US dollar, plummeting oil prices and major commodities, as well as the shrinking of major economies such as China, were among the factors taken into consideration.
“When I tabled the 2016 Budget, oil prices were at US$48 a barrel. Yesterday, the price was US$31.58. “As such, the 2016 Budget will have to undergo a recalibration in line with the current economic situation.
“I do not want to paint an unrealistic picture that isn’t based on facts. “It is better to be honest and upfront in our responsibility to uphold the best interests of the rakyat,” he said in a special assembly with Finance Ministry staff this morning.
Najib, who is also Finance Minister, described 2016 as a challenging year, especially in terms of the economy. He said the Goods and Services Tax (GST) net revenue for 2016 is expected to reach RM39 billion.
Najib said had the GST not been implemented, Malaysia’s deficit would increase to 4.8 per cent instead of 3.1 per cent this year.
The Star story:
Friday, 8 January 2016 | MYT 9:41 AM
Najib: Budget 2016 to be recalibrated
BY MAZWIN NIK ANIS
PUTRAJAYA: The 2016 Budget will be “recalibrated” to reflect the current economic climate, says Datuk Seri Najib Tun Razak.
The Prime Minister said that adjustments would have to be made to this year’s budget as much had changed since it was tabled last October.
“This is to ensure that it is accurate, realistic and according to the economic situation we are currently facing,” he said when addressing Finance Ministry staff on Friday.
Najib, however, did not give a specific date when the adjusted Budget would be presented, but indicated that this would be done soon.
The changes would include additional measures to be taken to optimise expenditure and the role of Government-linked companies.
The Prime Minister assured that despite the adjustments to the 2016 Budget, the people’s well-being would continue to be the Government’s priority.
The nation needs the resources, energy and attention of everyone. The Government is preparing to realign the planned economy 2016, which needed to take into the consideration all the volatility and changes in the variables.
The firms, enterprises and commercial entities must do their bit to ensure the Government is successful in bracing the the economic crunch. Despited the forecast GDP growth is still good, the slide of earlier projected GDP growth with revision from 4.5-4.8% to 3.1-3.4% is telling about the brunt on the Federal Government income.
When Budget 2015 was prepared before Oct 2015, it was projected the crude oil would be at USD48.00 per barrel. Today, the Federal Government is ready to a revised projection of a barrel of crude oil for USD32-35.00.
That would translate to a reduction of revenue for the Federal Government by RM4.5billion.
Federal Government is committed that existing essential subsidies such as a list of food items, medicines, gas for energy, oil and other subsistence such as BR1M and other programs, shall not be reduced.
Prime Minister Najib did ask all Federal Government arms to look into reduction of spending and lowering cost of operation, without impairing service especially to the rakyat.
Hence, the reduction of income would naturally be mitigated with trying into increase revenue from heightening productivity of economic activities, other direct and indirect taxes and lowering spending (such as allowing concession holders to increase charges in lieu of compensation).
On top of that, utilising reserves to reduce and treatment against long term financial commitments.
Improving the collection of revenue would definitely help and tight controls against leakages, wastage and excesses would be the combined compounded variables towards a more positive position of the Treasury coffer.
Tighter enforcement is a boon for revenue of regulators, local authorities, law enforcement agencies and all revenue collection entities be it in the Federal or State Governments.
In all, it is a responsibility of all. Politicians (ruling, opposition and independent), civil servants, GLCs, MNCs, private sectors, SMEs/SMIs, petty traders, workers union, all and sundry to pull up their socks.