Johari: No budget revision for now

The government will not make any revisions to the 2016 Budget now despite declining oil prices, says Deputy Finance Minister Johari Abdul Ghani.

“When we prepared the budget, the oil price then was US$48 per barrel but now it has dropped to US$36 per barrel.

“The impact on government revenue is bearable, so we do not see a need to do a revision at the moment. However, we will continue to monitor oil price movements in the first quarter of next year,” he told reporters at the special monthly, local and weekly draw of Bank Simpanan Nasional’s premium savings certificates to lucky winners.

Even if oil prices were to fall below US$30 per barrel, Johari said the government would tweak its spending to mitigate the need to adjust the national budget.

On the possibility of revising petrol pump prices to a weekly rather than monthly basis, he said the government was open to this suggestion as long as it did not burden the people.

Johari said the Petrol Dealers’ Association of Malaysia was scheduled to submit their proposal on this matter to the ministry next week for consideration.

“We do not see a problem in revising [prices] weekly, but oil and gas companies and petrol station operators must also be on board,” he said.

Johari said the weekly revision would result in petrol pump prices being more reflective of the current market and its changes would not be too drastic.

Source – Bermana