Govt has achieved RM3.25 billion surplus in just four months - Guan Eng
Lim Guan Eng
By NST Online - October 20, 2018 @ 6:21pm
KUALA LUMPUR: The government has achieved an RM3.25 billion surplus in its current account by implementing `sound and prudent` financial management practices, Finance Minister Lim Guan Eng said.
He said this was achieved over the four-month period from May to August 2018, compared to when there was only RM450 million left in the Consolidated Revenue Account after Pakatan Harapan (PH) took over the federal government.
Lim said due to the alarming fiscal position of the federal government when PH first took over the administration on May 9, the government was left with no choice but to implement stringent measures to control the operating expenditure and practise prudent spending.
He said the government has since not only managed to get savings from eliminating corrupt practices but also efficiency gains from institutional reforms such as open competitive tenders.
“The revenue for the four-month period from May to August has increased by RM1.70 billion from RM71.88 billion to RM73.58 billion when compared against the previous four-month period from January to April.
“Our operating expenditure has also declined substantially by RM12.96 billion from RM83.29 billion to RM70.33 billion.
“This current account balance surplus of RM3.25 billion has helped the federal government to record an increased Consolidated Revenue Account balance of RM3.70 billion as of Aug 31,” he said in a statement.
Lim said the seven-fold increase in the Consolidated Revenue Account was a testament to the good financial management of the government.
He said it also explains how the government managed to secure sufficient funds to run the administration of the federal government including paying the monthly RM8 billion salaries and pensions.
Lim said there were those who questioned whether claims that the government was left with only RM450 million were true, even though they were revealed and confirmed by the accountant-general Datuk Saat Esa.
“Others asked how was it possible for the Harapan government to continue to pay monthly salaries and pensions of RM8 billion with only RM450 million,” he said.
Lim explained that only monies in the Consolidated Revenue Account can be spent on government expenditure.
He said there was a clear month-by-month decline in the Consolidated Revenue Account due to excessive expenditure in the run-up to the general election.
“During the four months from January to April, revenue collected during the four-month period was RM71.88 billion compared with operating expenditure of RM83.29 billion, resulting in a current account balance deficit of RM11.41 billion.
“This RM11.41 billion deficit caused the Consolidated Revenue Account, which started with RM11.86 billion at the beginning of the fiscal year 2018, to end up with only RM450 million at the end of April,” he said.
