To reach Vision 2020, Dr M tells Putrajaya to cut spending

Putrajaya must be frugal and reduce its spending if it wants Malaysia to be a developed nation by the year 2020, says Tun Dr Mahathir Mohamad.

National news agency Bernama today quoted the former prime minister as saying that if it wanted to achieve Vision 2020, Putrajaya must only prioritise important projects and stop those deemed unnecessary.

"I suggest (that the government) be extra careful in spending. The government should study if what they are spending on now is necessary. A lot of the allocation is not necessary," he said.

Dr Mahathir, who is also the president of Perdana Global Peace Foundation, was speaking to reporters after launching the One Billion Dollar Donation Campaign To Rebuild Gaza at Shaftsbury Asteriain Cyberjaya today.

Bernama reported that he was commenting on Prime Minister Datuk Seri Najib Razak's recent announcement that Putrajaya would cut its operating expenditure by RM5.5 billion to RM217.94 billion. The number did not include any additional expenditure.

Dr Mahathir added that Putrajaya had done its planning, and with the right strategies and hard work, the country would still be able to achieve the status of a developed nation.

"The projects should be identified and just cut off the allocation. We know we do not have much money. So, we must find ways to spend less. When we are rich, we act like rich people; when we are poor, we must act like poor people," he said.

Najib in his budget revision speech on Tuesday also said the fiscal deficit target of 3% of the gross domestic product (GDP) for the year has also been revised to 3.2%.

Among the savings strategies Najib announced in the revision were deferring the 2015 National Service to enable the programme to be reviewed and enhanced; and optimising outlays on supplies and services, especially overseas travel, events and functions and use of professional services.

Najib said the transfers and grants to statutory bodies, government-linked companies, and government trust funds – particularly those with a steady revenue stream and high reserves – would also be reviewed.

He added that Putrajaya would intensify domestic tourism and postpone the scheduled electricity tariff and gas price hikes for the industrial sector this year. – January 24, 2015.