27th July, 2012
KUALA LUMPUR: The payment of a bonus for civil servants announced by the government on Wednesday, will not increase the country’s targeted fiscal deficit of 4.7 per cent for this year, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah yesterday.
He said the government is instead working hard to reduce the deficit by increasing revenue and managing expenditure efficiently.
“This is being done in two ways. One is to ensure that more is collected by the Inland Revenue Board, and the Customs Department.
“We are expecting larger revenue when compared to last year and in terms of expenditure, managing it based on the concept of value for money. If we can cut, we do it,” he told reporters after officiating the ASLI Banking Summit 2012 here yesterday.
At the same time, Husni said the government is working on the outcome base budget, which will likely be introduced soon.
The minister however did not elaborate much on this.
On the 4.7 per cent fiscal deficit target, he said the government is on track to achieving it, while committed to reducing it further next year, and eventually up to three per cent in 2015.
On Wednesday, Prime Minister Datuk Seri Najib Tun Razak announced a half-month bonus with a minimum payment of RM500 for civil servants and a special payment of RM500 for pensioners, all to be paid on Aug 9.
The bonus and special payment, will involve an estimated RM2.2 billion and benefit 1.27 million civil servants as well as 657,000 government pensioners.
Meanwhile, on the gross domestic product target this year, Husni said the government is maintaining the projection at the level of four to five per cent, given the current global economic situation.
“We have to wait for the second quarter but I think it will be comfortable for us,” he added.
On Malaysia’s exposure to Europe, he said only 1.5 per cent of total trade was impacted in respect of five troubled countries, namely Spain, Greece, Italy, Ireland and Portugal, with the local banking sector not much affected.