GOVERNMENT LOOKING AT WAYS TO CUT BACK ON ITS EXPENDITURE

KUALA LUMPUR, Sept 29 (Bernama) -- The government is looking at ways to cut back on its expenditure, said Prime Minister Najib Razak.

While there might be a slight reduction in terms of operating expenditure,
it would not affect the efficiency of the government, he told a press
conference after being briefed by Malaysia's Central Bank's Board of Directors
here Tuesday.

He said government was at present spending an extra RM1 billion (US$286.3
million) a month, over and above what was the normal, following the pump priming
measures that were introduced.

He also said that the government was committed to this spending until the
end of 2010.

"Beyond 2010, we hope that the external economic environment would improve
considerably, with enough momentum domestically and internationally to ensure
Malaysia is on a much more positive trajectory in terms of economic growth,"
Najib said.

According to Najib, government spending had to be more prudent in terms of
value for money, which includes procurement as well.

He said moving forward, more targeted subsidies, have to be given to
deserving people.

"We are mindful of the need to rein in the fiscal deficit," he added.

The government has forecast that the budget deficit would hit 7.6 per cent
of the gross domestic product (GDP) this year.
-- BERNAMA