Zero-based budgeting

> New policy to avoid higher allocation demand for following year: Pua

KUALA LUMPUR: The government will be implementing a “zero-based budgeting” policy beginning this year, in an attempt to minimise wastage and reduce the increasing demand for budget allocations from each ministry.

Special officer to the finance minister Tony Pua ( pix) said under the previous administration, ministries have been seeking their annual budget based on the previous year’s figures, albeit at an adjusted, higher rate.

He said the use of the previous year’s budget as a baseline would normally incur a higher cost and result in wastage, while also confirming that Budget 2019, that is expected to be announced in November, would be zero-based.

“This year, the Finance Ministry is starting a new process called zero-based budgeting, meaning ministries will start from scratch. They will have to think what exactly they want to do for next year, and only then they will write the items in their budget request.

“It’s more challenging and requires more work, because they can’t copy and paste from the previous year’s budget. It’s also a learning process for all ministries.

“We hope this process will help us break away from the previous problems of ministries always wanting more for the next budget,” he said in his opening speech at the launch of the “Procurement as Part of Good Governance in New Malaysia” report and seminar yesterday.

Separately, Pua said the Pakatan Harapan (PH) government has pledged to continue the efforts of the previous Barisan Nasional (BN) administration to provide business opportunities to bumiputra contractors, namely in procurement matters.

He said the goal to upgrade the skills of bumiputra contractors remained the same, despite previous claims that the new government will not uphold their rights and privileges, especially in economic gains.

However, he noted that the implementation and approach will differ, in that it aims to breed successful contractors rather than cronies.

“It is our role in the Finance Ministry to continue the policy to provide opportunities and to upskill bumiputra contractors. “It is our objective and the objective hasn’t changed from the previous administration.

“We agree, if there are projects that only bumiputra contractors qualify for, we want these projects to be tendered competitively among them.

“Those who can’t make it will fall off the chain. Those who are good can then graduate and compete in the market overall,” he said in his speech.

... Defence Minister Mohamad Sabu with ministry officers and Armed Forces personnel at the ministry's monthly assembly and launch of the 61st National Month Celebration at Wisma Perwira in Kuala Lumpur yesterday. Also present were Deputy Defence Minister Liew Chin Tong.