Spend wisely or face future budget cuts, ministries told

Ministries should spend their operating expenditures wisely or face financial cuts in the recalibrated Budget 2016, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

He said that previously the ministries were instructed to fully utilise the operational and development funds given by the Government, and the results of their achievements were reflected in their key performance index (KPI).

But now, the KPI for the ministries would be based on how much they could save from the financial allocation given to them, Ahmad Husni added.

“Last time, our KPI was based on input. When we give a ministry RM1bil, they need to spend all of it according to their job objectives.

“But now, it is outcomebased budget. This means that when we allocate RM1bil, they (ministries) need to spend RM900mil to be deemed to have achieved a good result.

“Ministries should also cut down on spending on receptions. We used to have meals at meetings, but now we only have drinks,” he said after attending a Chinese New Year open house organised by the Tambun Farmers Association here yesterday.

Ahmad Husni, who chairs the Government’s integrity committee which monitors the expenditures of all ministries, said these would be monitored closely to prevent wastage.

He said the ministries should study the forms of wastage cited by the Auditor-General (AG) in his annual reports.

“If the AG finds that there are 40 discrepancies (in his report), we will not want to see a repeat of these problems next year,” he added.

Ahmad Husni said the current global economic crisis was the worst in modern times.

As such, he said the Government and the people must work closely to improve the national economy.

“We always hear comments about how bad the economy is.

“Let’s focus on working together. We no longer want anyone to play the racist card because there’s no point for it and it won’t benefit anyone.

“Everyone needs to do his or her best,” he added.

Source – The Star (15 Feb 2016)

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