Government Rules Out Ring-Fencing Policy For Rural Welfare, Infrastructure -- Lim

KUALA LUMPUR, Nov 6 (Bernama) -- The government has no plans to introduce a ring-fencing policy to set a protected minimum allocation for rural welfare and infrastructure programmes such as roads, clinics and hospitals, Deputy Finance Minister Lim Hui Ying said.

She said such allocations were not specifically fixed as the government adopted a need-based approach, guided by current priorities, including the level of basic facilities and the socio-economic needs of each area.

“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 said during the question-and-answer session in the Dewan Rakyat on Thursday.

She was responding to a supplementary question from Ahmad Tarmizi Sulaiman (PN–Sik) on the government’s readiness to implement a ring-fencing policy for rural welfare and infrastructure programmes to ensure deficit reduction efforts do not widen the urban-rural development gap.

At the same time, Lim said her ministry and related agencies were continuously guided to ensure rural projects and programmes such as clean water supply, farm roads, health facilities and cost-of-living aid for fishermen and farmers remain prioritised within the nation’s fiscal capacity.

She said this approach reflected the government’s commitment to maintaining fiscal discipline and inclusive development to ensure no region or group is left behind in the country’s progress.

Lim also said the government remained confident of achieving a fiscal deficit target of 3.8 per cent in 2025 through ongoing fiscal reform initiatives, including the Medium-Term Revenue Strategy (MTRS) to strengthen revenue collection and a review of public expenditure to ensure efficiency and effectiveness.

To optimise public spending, she said, the government is implementing targeted subsidies for diesel and RON95 petrol, rationalising statutory bodies, and conducting a comprehensive review of expenditure across all ministries and agencies.

“This enables the government to manage finances more efficiently through resource reallocation within the Budget framework.

“It also involves careful consideration between introducing new high-impact programmes and phasing out existing ones that may no longer be relevant or effective, ensuring every allocation provides optimum value and aligns with national development priorities,” she said in reply to a supplementary question from Syahredzan Johan (PH–Bangi).

He had asked about the government’s measures to achieve the 3.8 per cent fiscal deficit target in 2025 without affecting public welfare and socio-economic spending.

However, Lim said fiscal policy objectives would remain supportive and responsive, ensuring sufficient fiscal support to safeguard public well-being and advance economic reforms without derailing the fiscal consolidation path.

-- BERNAMA