Kuala lumpur: The government has decided against implementing a ring-fencing policy to guarantee a minimum allocation for rural welfare and infrastructure projects, such as roads, clinics, and hospitals, Deputy Finance Minister Lim Hui Ying announced. The decision reflects the government’s approach to addressing the current needs and priorities of different regions, without committing to fixed allocations.

According to BERNAMA News Agency, Lim emphasized that the government utilizes a need-based strategy, driven by the existing level of basic facilities and socio-economic necessities in each area. This method ensures that national resources are distributed equitably and are responsive to the actual needs of communities across the nation. Lim’s remarks came in response to a query from Ahmad Tarmizi Sulaiman (PN-Sik) during a Dewan Rakyat session about the government’s stance on ring-fencing policy to prevent a widening urban-rural development gap amid deficit reduction efforts.

Lim assured that the government’s focus remains on prioritizing rural projects such as clean water supply, farm roads, health facilities, and cost-of-living support for fishermen and farmers, all within the nation’s fiscal limits. She noted that this strategy underscores the government’s commitment to maintaining fiscal discipline and promoting inclusive development, ensuring no region or group is left behind.

Furthermore, the government is targeting a fiscal deficit of 3.8 percent by 2025 through fiscal reform efforts, including the Medium-Term Revenue Strategy (MTRS) aimed at enhancing revenue collection and reviewing public spending for efficiency. Lim elaborated on the steps being taken, such as implementing targeted subsidies for diesel and RON95 petrol, rationalizing statutory bodies, and conducting a thorough expenditure review across ministries and agencies.

In response to a question from Syahredzan Johan (PH-Bangi) on achieving the fiscal deficit target without compromising public welfare, Lim explained that the government is optimizing public spending by reallocating resources within the Budget framework. This involves evaluating the introduction of new high-impact programs while phasing out outdated ones to ensure every allocation provides maximum value and aligns with national development goals. Lim reassured that fiscal policy objectives would remain supportive and responsive, safeguarding public welfare and advancing economic reforms without disrupting fiscal consolidation efforts.