GUAN ENG: GOVT ACHIEVED RM3.25B SURPLUS IN 4 MONTHS
Minister says this is the result of sound and prudent financial management
THE government has achieved a RM3.25 billion surplus in its current account by implementing “sound and prudent” financial management practices, Finance Minister Lim Guan Eng said.
He said this was achieved over the four-month period from May to August, compared with when there was only RM450 million left in the Consolidated Revenue Account after Pakatan Harapan took over the Federal Government.
Lim said due to the alarming fiscal position of the Federal Government when PH first took over the administration on May 9, the government was left with no choice but to implement stringent measures to control the operating expenditure and practise prudent spending.
He said the government had since not only managed to get savings from eliminating corruption, but also efficiency gains from institutional reforms, such as open competitive tenders.
“The revenue for the four-month period from May to August has increased by RM1.70 billion, from RM71.88 billion to RM73.58 billion, when compared against the previous four-month period from January to April.
“Our operating expenditure has also substantially dropped by RM12.96 billion, from RM83.29 billion to RM70.33 billion.
“This current account balance surplus of RM3.25 billion has helped the Federal Government to record an increased Consolidated Revenue Account balance of RM3.70 billion as of Aug 31,” he said.
Lim said the seven-fold increase in the Consolidated Revenue Account was testament to the government’s good financial management.
He said it explained how the government managed to secure sufficient funds to run the administration of the Federal Government, including paying the monthly RM8 billion in salaries and pensions.
He said there were those who questioned whether claims that the government was left with only RM450 million were true, even though they were revealed and confirmed by Accountant-General Datuk Saat Esa.
“Others asked how was it possible for the PH government to continue to pay monthly salaries and pensions of RM8 billion with only RM450 million,” he said.
Lim said only monies in the Consolidated Revenue Account could be spent on government expenditure.
He said there was a month-bymonth decline in the Consolidated Revenue Account due to excessive expenditure in the run-up to the 14th General Election.
“From January to April, revenue collected during the fourmonth period was RM71.88 billion compared with operating expenditure of RM83.29 billion, resulting in a current account balance deficit of RM11.41 billion.
“This RM11.41 billion deficit caused the Consolidated Revenue Account, which started with RM11.86 billion at the beginning of the fiscal year 2018, to end up with only RM450 million at the end of April,” he said.