Economy  |  JANUARY 28, 2016 8:03AM

Low oil impacts national revenue up to RM9 bil

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oil price fall down generic 03Sliding oil prices have impacted the national revenue at an estimated RM7 billion to RM9 billion. The projection is based on the global benchmark Brent Crude oil price of US$35 per barrel. The government had previously announced an allocation of RM267.2 billion for the Budget 2016, of which operating expenditure amounted to RM215 billion, while development expenditure was at RM49 billion.

The budget, tabled last October, was based on US$48 per barrel.

However, Prime Minister Najib Abdul Razak gave an assurance that the prudent measures undertaken by the government would ensure savings of RM9 billion in operation and development expenditure, without compromising on doing the right thing for the nation and the people.

In recalibrating the Budget 2016 today, Najib, who is also the finance minister, announced that the 1Malaysia People’s Aid (BR1M) and welfare assistance programmes would continue to be implemented.

“I would also like to emphasise that the government will maintain the current rate of the Goods and Services Tax,” he added.

The government, he said, will continue to spend prudently by prioritising projects and programmes with high impact centred on the philosophy of the people economy.

“However, this will not involve the emoluments of civil servants and pensions of retirees, and as well as not affect the delivery mechanism of the government,” he added.

Najib also noted that the government would not terminate the services of any civil servant, including those appointed on a contract basis.

This is alongside continuing the implementation of an annual increment for civil servants on July 1, 2016, as promised in the Budget 2016.

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