BIGGER BUDGET FOR NEXT YEAR, SAYS MINISTER

KUALA LUMPUR, Sept 23 (Bernama) -- The allocation for Budget 2011 is expected to
be higher than this year's total of RM191.5 billion (US$61.908 billion), Second
Finance Minister Ahmad Husni Hanadzlah said Thursday.

"The allocation will be higher because we are expecting higher revenue compared
to this year, (so) we can give more," he told reporters after delivering a
keynote address at a Malaysian Financial Planning Council forum on Recent
Developments of Islamic Finance here.

Prime Minister Najib Razak is scheduled to table Budget 2011 in Parliament on
Oct 15.

Husni said there would be more allocation for the National Key Result Areas
(NKRA) as next year would be the second year of its implementation and in
addition, initiatives under the National Key Economic Areas (NKEA) would also
start next year.

When asked whether allocations for NKRA and NKEA would result in a higher
operating expenditure, he said part of the allocations for NKRA and NKEA would
be under development expenditure.

About 70 per cent of the operating expenditure was a fixed cost which included
pension payment and debt repayment, he added.

Last year, Najib unveiled the 2010 budget totalling RM191.5 billion, of which
RM138.3 billion or 72.2 per cent for operating expenditure and RM53.2 billion or
27.8 per cent for development expenditure. (US$1=RM3.06)

Husni said that under NKEA initiatives, 92 per cent would be funded by the
private sector and the remaining eight per cent by the government.

"We have to provide the funding to facilitate the private sector's
involvement. We need to take this initiative particularly when we are expecting the
global economic growth to be slower in the second half of this year and next year.

"We believe, with NKEA initiatives next year, by second half of next year we
will be able to pick up higher growth and achieve six per cent next year," he
said.

As for NKRA, he said, a performance evaluation would be carried out to review
the impact of projects on the people and whether it had reached satisfactory
levels.

On scepticism over mobilising private investments for the Economic
Transformation Programme, he said there would always be some scepticism as these
were considered new initiatives.

"I think it is achievable. Out of 100 and over entry point projects (EPP), seven
are ready to take off and 12 are almost completed with their negotiations.

"If this seven EPP projects can take off next year, that will add up to our
gross domestic product growth and will bring confidence to foreigners," he said.

A total of 131 EPP projects worth RM670 billion will be carried out across 12
sectors, of which seven will be worth RM118 billion.(US$1=RM3.06)
-- BERNAMA



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