Deputy Finance Minister says no ring-fencing policy for rural welfare, citing need-based approach to ensure equitable distribution of national resources.
KUALA LUMPUR: The government has ruled out implementing a ring-fencing policy to establish protected minimum allocations for rural welfare and infrastructure programmes.
Deputy Finance Minister Lim Hui Ying confirmed there are no plans to introduce such a policy for programmes covering roads, clinics and hospitals.
She explained that allocations are not specifically fixed as the government adopts a need-based approach guided by current priorities.
“This approach allows national resources to be distributed more equitably and in a manner that is responsive to the actual needs of the people nationwide,” she told the Dewan Rakyat.
ALSO READ: Government considers small allocations for rural maintenance work
Lim was responding to a supplementary question from Ahmad Tarmizi Sulaiman regarding rural welfare protection amid deficit reduction efforts.
She assured that her ministry and related agencies continuously prioritise rural projects within the nation’s fiscal capacity.
These include clean water supply, farm roads, health facilities and cost-of-living aid for fishermen and farmers.
The approach reflects the government’s commitment to maintaining fiscal discipline while ensuring inclusive development.
Lim expressed confidence in achieving the 2025 fiscal deficit target of 3.8% through ongoing reform initiatives.
These include the Medium-Term Revenue Strategy to strengthen revenue collection and a comprehensive review of public expenditure.
To optimise public spending, the government is implementing targeted subsidies for diesel and RON95 petrol.
It is also rationalising statutory bodies and reviewing expenditure across all ministries and agencies.
“This enables the government to manage finances more efficiently through resource reallocation within the Budget framework,” Lim said.
She emphasised careful consideration between new high-impact programmes and phasing out ineffective existing ones.
This ensures every allocation provides optimum value and aligns with national development priorities.
Lim was responding to Syahredzan Johan’s question about achieving deficit targets without affecting public welfare.
She assured that fiscal policy objectives would remain supportive and responsive to public well-being.
Sufficient fiscal support will be maintained to safeguard public welfare and advance economic reforms.
The government remains committed to its fiscal consolidation path while protecting socio-economic spending. – Bernama
