Government to cut back on spending

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KUALA LUMPUR: The Government is looking at ways to cut back on its expenditure but this will not affect its performance, Datuk Seri Najib Tun Razak said.

“There might be a slight reduction of the operating expenditure but it will not affect the efficiency of the Government,” the Prime Minister said.

He was speaking at a press conference after a two-hour briefing by Bank Negara’s Board of Directors about the current economic situation here yesterday.

Najib said the Government’s expenditure reached RM1bil a month following the measures that were introduced to stimulate the economy.

He also said the Government was committed to this expenditure until the end of next year.

“Beyond 2010, we hope that the external economic environment would improve considerably, with enough momentum domestically and internationally to ensure Malaysia is on a much more positive trajectory in terms of economic growth,” he said.

The Government was planning to cut its operating expenditure ahead of the Budget which would be tabled next month.

Najib said it would continue to ensure that subsidies given to the rakyat would benefit only deserving people.

The Government has to be more prudent in its spending to ensure value for money including its procurements, he said.

The budget deficit is forecast to hit 7.6% of the gross domestic product this year.

Asked whether the Budget would be people-friendly, he said: “It will be within the scope of our means. It will be rakyat first, yes certainly.”