PETALING JAYA: Prudent spending and savings will be key features in the government’s expenditure planning for 2027.
In a Treasury circular, all ministries and government agencies are required to emphasise projects based on the pillars and priority areas identified under the 13th Malaysia Plan (13MP) and align them with the Madani Economic Framework to ensure the successful implementation of national policies and economic aspirations.
“Organisations are expected to discontinue non-critical programmes, review the efficiency of output delivery and the effectiveness of outcome achievement, and focus existing programmes and activities on national priorities while emphasising sustainability and optimal resource management,” said the circular titled Guidelines for the Preparation of Proposed Federal Expenditure Estimates for 2027 dated June 5.
“They are also required to strengthen programme planning and management by aligning expenditure with actual implementation capacity to prevent wastage and leakages, while enhancing project monitoring.
“Comprehensive outcome evaluations must be undertaken for all programmes and projects before any new allocation is approved to ensure effective implementation and avoid duplication, leakages and failure to achieve intended objectives,” it added.
The Finance Ministry said Putrajaya is committed to ensuring that the national budget remains resilient and has adaptable strategic mechanisms to withstand economic shocks.
“Beyond ensuring the efficient allocation of financial resources so that every ringgit delivers maximum value, this commitment is essential in building a responsive and agile economy.
“A holistic state of preparedness will enable the country to absorb economic shocks, safeguard public welfare, support business and industrial continuity, and maintain a sustainable growth trajectory,” said the circular.
The ministry said the savings generated from the review and discontinuation of existing programmes and activities that fail to achieve their intended outcomes may be redirected towards implementation of new and more efficient initiatives.
As such, the performance framework of ministries, departments, agencies, statutory bodies and government companies for 2027 will focus on core functions and contributions to national priorities, while ensuring that resources are directed towards programmes and initiatives that deliver measurable outcomes and meaningful benefits.
The circular also touched on human resource optimisation whereby the creation of new posts is not permitted except through trade-off arrangements and/or redeployment of existing positions, to ensure that there are no additional financial implications for the government.
Hiring of contract officers is only allowed for replacement of existing officers or for renewal of existing contracts.
Accounting Officers are required to give serious attention to audit observations and take firm corrective action to address instances of non-compliance and operational weaknesses, while ensuring that similar shortcomings do not recur in future.
