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Thursday, October 3, 2013

Putrajaya gets extra RM15b, RM9b for fuel subsidies


BY BOO SU-LYNOCTOBER 1, 2013

KUALA LUMPUR, Oct 1 — Parliament passed today the Supplementary Supply (2013) Bill for RM15 billion ahead of Budget 2014, out of which RM8.9 billion was channeled to fuel subsidies.

A total of RM3.8 billion went to emoluments to the defence ministry and the police force, as well as to the Inland Revenue Board.

“The petroleum subsidies are a huge burden on the government,” Deputy Finance Minister Datuk Ahmad Maslan told reporters at Parliament here today.

“Back then, one tong was US$102, but it increased to US$115 in August. So this supplementary bill allocated RM8.853 billion for subsidies,” he added.

Another RM1.6 billion went to the cost of operations, maintenance, utilities, as well as the Ops Daulat operation earlier this year against Sulu invaders in Sabah.

RM800 million was allocated to pensions and retirement allowances.

Prime Minister Datuk Seri Najib Razak is scheduled to table Budget 2014 on October 25.

All eyes will be on the Budget to see if Putrajaya introduces financial reforms such as the long-awaited Goods and Services Tax (GST) to increase its revenue.

Earlier this month, the government reduced subsidies for RON95 petrol and diesel by 20 sen a litre in a bid to slash its fuel subsidy bill by an estimated RM3.3 billion annually.

Pressure has increased on Putrajaya to trim the country’s debt level and introduce meaningful reforms to widen its revenue base after international ratings firm Fitch cut the country’s debt outlook from “Stable” to “Negative” in July.

- See more at: http://www.themalaymailonline.com/malaysia/article/putrajaya-gets-extra-rm15b-rm9b-for-fuel-subsidies#sthash.4riB4IIc.dpuf

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