SIBU: It is logical for the Federal Government to restructure the Budget 2015 due to the unfavourable economic situation now.
Prime Minister Datuk Seri Najib Tun Razak had said he would announce the restructuring of Budget 2015 which totalled RM273.9bil.
An economic commentator here, Dr Gregory Hii said with the drastic drop in oil revenue for the country following the continous price drop of oil to US$46 now and that the government needing to spend about RM500mil for flood victims in West Malaysia, it is right for a revision in the budget.
“Revenue from exporting oil contributes to 30% to the country coffer. With this shortfall in income, it is logical for any government to restructure and revise the budget.
“This is just like private company who needs to make adjustment to its expenditure when facing uncertainty,” he said.
Dr Hii said the adverse economic situation had made it difficult for the country to achieve its projected income now.
Coupled with the depreciation of the Malaysian ringgit against the greenback by 10% over the last one to two months and the tremendous outflow of fund, he opined that the problem was further compounded.
With IMDB incurring heavy debt from its investment project, it is also a cause for concern.
He proposed that in restructuring the budget, the government would have to cut down on its expenditure. Doing so would help it to settle its 3% deficit.
One of which is for it to cut down 30% of the oversized public workforce.
“There is a need to reduce the workforce as there are quite a lot of inefficiency in the civil service,” he suggested.
Dr Hii said having a smaller but productive public service should be considered seriously.
The lower expenditure in salary of civil servant would help the country to meet its target of reducing its deficit.