No more 'Christmas shopping' for govt ministries as 'zero-based budget' adopted, says Guan Eng


Finance Minister Lim Guan Eng says rules for cryptocurrency exchanges, ICO in force by Q1 of 2019.

KUALA LUMPUR: The Government has implemented a "zero-based budget" system to avoid a "Christmas shopping" scenario where ministries rush to finish up allocations before the year ends, said the Finance Ministry.

Its minister Lim Guan Eng (pic) said zero-based budgeting would maximise savings and returns.

Zero-based budgeting is a method of budgeting in which all expenses must be justified for each new period. It starts from a "zero base" and every expense is analysed based on whether it is needed and how much it costs.

Lim said the government wants to give priority to spending on matters that are necessary.

"What is important is that we do not want (the purchasing) to be done at the year end, what is termed 'Christmas shopping', because the approved allocations had not been spent.

"What they (ministries) do is they try to finish (the money allocated) by the end of the year," he said in his winding up address for his ministry on issues brought by lawmakers during the Budget 2019 debates.

Lim said the current expenditure comprises salaries, rents, utility bills, contra items and maintenance expenses (among others). This was unlike before where the expenditure was prepared in an incremental manner.

He said that the previous government did not consider actual (financial) commitments.

"Every year, allocations prepared are insufficient as new programmes (are introduced) without looking at its effectiveness.

"At the same time, the government had to bear the actual commitments of the ministries, the country's debt and off-budget expenditures," he said in reply to Ahmad Maslan (BN-Pontian) who asked if the Government is doing away with the outcome-based budget system.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Nation

Sarawak records 252 new Covid-19 cases, one death
Covid-19: New cases fall below 2,000 for third straight day, eight fatalities bring death toll to 1,177
Covid-19: Cases up by 1,529, bringing total to 314,989 (updated daily)
EMCO in four areas in Maran ends ahead of schedule
Cops investigating woman's murder in Taman Bangi
Cops arrest suspect for allegedly stabbing 78-year-old man in Johor
PM: Ungku Aziz's achievements should encourage Malaysians to overcome issue of poverty
Proposal to be submitted to NSC to allow 4,000 fans at football stadiums, says Reezal
Ministry investigating claims of black patches of water in Sg Kim Kim, Johor
Seventy-nine summonses issued in police ops against those who modified motor exhausts

Stories You'll Enjoy


Vouchers