KUALA LUMPUR: Development projects under the 12th Malaysia Plan (12MP) for this year will be reviewed for implementation in line with guidelines issued by the Finance Ministry, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed.
He said in a statement that this is to optimise government spending in financing some of the additional subsidy-related expenditure.
Mustapa, who chairs a coordination meeting on the implementation of development projects under the 12MP once a month, said a meeting on the allocation of development expenditure (DE) was held today and attended by representatives of the Finance Ministry, Works Ministry, Implementation Coordination Unit (ICU) of the Prime Minister's Department and Public Works Department.
"Today's meeting decided that the proposed projects be reviewed for implementation involving new and existing projects that have not yet started the procurement process or are being advertised, non-priority projects that have been identified except projects that have an immediate impact on the well-being of the people, and new and existing projects that face implementation problems such as site issues."
Meanwhile, projects for which tender advertisements, letters of intent and letters of acceptance have been issued will be continued to support the government's efforts to accelerate the post Covid-19 economic recovery.
The Economic Planning Unit (EPU) of the Prime Minister's Department noted that expenditure for aid and subsidies is projected to reach RM77.7 billion compared with the allocation of RM31 billion approved in the 2022 Budget.
Mustapa also said an engagement session between the Finance Ministry, EPU and ICU with all ministries would be held next week to provide clarification on the proposed review of priorities for the implementation of development projects this year.
"The government will ensure that the austerity measures implemented do not affect the country's economic recovery efforts and the well-being of the people."
The Public Expenditure Savings Guidelines issued by the Finance Ministry on July 14, among others, outlined that operating expenditure should achieve at least 5.0 per cent in savings from the remaining allocation for this year.
As for DE, projects that have not started the procurement process or are being advertised will be reviewed for priority. Non-priority projects that have been identified should be postponed except for projects that have an immediate impact on the well-being of the people. – BERNAMA
