Finance Ministry to amend rules that hinder transformation initiatives

Published: Saturday December 18, 2010 MYT 2:17:00 PM
Finance Ministry to amend rules that hinder transformation initiatives
By ROSHIDI ABU SAMAH

IPOH: The Finance Ministry will amend any financial regulation found to be outdated or which hinders the effective implementation of the country’s transformation initiatives.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said some of the regulations on the books had been introduced a long time ago and had been suitable for those times.

“But with the changing of times, some may no longer be relevant now.

“Therefore, we are studying all regulations currently available and amend those deemed irrelevant to adapt to the situational needs of the changing world,” he told reporters after handing over a RM34,000 cheque to Perak RTM for the purchase of camera equipment Saturday.

Ahmad Husni was commenting on a call made by Prime Minister Datuk Seri Najib Tun Razak for government agencies to be bold enough to review decisions and conditions that could hamper the country’s transformation agenda.

On another matter, Ahmad Husni said the Government would engage the World Bank to carry out a study on the management of the country’s public expenditure.

This, he said, was part of efforts to ensure that the Outcome Based Budgeting (OBB) system could be implemented in all ministries within the next three years.

He said the World Bank had been requested to complete the study before the tabling of the country’s next budget.

”We will take into account the outcome of the study in our preparation for the 2012 Budget,” he said, adding that five ministries namely the Finance, Human Resource, Public Works, Education and Transport Ministries had been identified as those to be part of the OBB pilot project in 2012.

Ahmad Husni said the implementation of the OBB would indirectly reduce leakages in the Budget and enable the money to be used in a more efficient way.

The OBB is an integrated system that uses mission, goals and objectives to explain why money is being spent to achieve a specific outcome and enables policymakers to determine which activities were cost-effective, to achieve national priorities.