‘We have to manage finances wisely’
Govt has many plans for 2017 but it will be based on what we can afford, says PM
BANGKOK: Spending and allocations under Budget 2017 will have to be based on what the Government can afford because it needs to manage the country’s financial position responsibly, said Datuk Seri Najib Tun Razak.
The Prime Minister said the Government plans to do many things for the people and the country, but given the economic outlook it would have to ensure public funds were spent wisely.
“We have to look at our affordability and reign in, or at least manage, our debt and fiscal deficit prudently.
“Due to constraints we have to manage finances in the most creative way so that we can extend as much help and benefit to the people,” the Prime Minister told the Malaysian media after attending the 2nd Asia Cooperation Dialogue (ACD) Summit here.
Najib, who is also Finance Minister, will table the Budget in Parliament on Oct 21.
The Prime Minister said the Budget, among others, entailed financial outlook and economic prospects for next year and beyond, as well as detailing some of the challenges faced by the nation.
“I will be holding special sessions with ministers and officials to find out their needs and aspirations in the Budget, to see if I can fulfil them.
“I will also explore what are the tax measures that we can institute, as well as our revenue position from the various sources.”
He declined to comment when asked if ministry budgets would see significant cuts due to the financial constraints.
The Prime Minister said he would also be reviewing public feedback and look at suggestions of measures the Government could put in place.
“We will go through the suggestions and decide what is affordable and prudent, and what is the right thing to do.
“We need to bear in mind that we are facing a scenario of low commodity prices. Some of the measures that developed countries initiated have impacted emerging economies.
“This is the kind of background we are facing when drawing up the Budget for next year,” he explained.
In his remarks at the ACD summit, Najib said Asian nations must aim for common development and prosperity, and resist foreign interference so that the region and its member states can control their own destiny.
With the centre of global gravity shifting to the east, Asia must show itself equal to the new role and insist that its cultures, laws and sovereignty be respected by all.
Najib also called for greater unity and collaboration so that Asia could fulfil its potential as the major driving force for economic growth.
“The day of the old empires is long gone and the peoples of Asia insist that our own cultures, our own laws and our own sovereignty be respected by all.
“If this is to be the Asian Century and I believe it is, we must stand tall and seize control of our own destiny,” he said during the plenary session.
Najib brought the leaders’ attention to the World Economic Outlook report by the International Monetary Fund which projected the global growth forecast to expand by only 3.4% next year.
Stating that weak domestic demand in developed economies, low commodity prices, increasing fiscal and current account imbalances, and policy tightening as some of the factors that dampened recovery, Najib said this underscored the need for enhanced policy and coordination among ACD countries.
“It is imperative that ACD member states be more united and work collaboratively, so that Asia can fulfil its potential as the major driving force for global economic growth,” he said.