| Azlan Othman |
BRUNEI will see a budgetary spending of B$5.3 billion in the 2018/2019 Financial Year, marking no increase in government expenditure compared to the previous fiscal’s proposal.
The national budget for the new fiscal year was proposed by Minister of Finance II YB Dato Seri Paduka Dr Awang Haji Mohd Amin Liew bin Abdullah during the annual budget deliberation for fiscal year 2018-2019, on the third day of the 14th Legislative Council session yesterday.
This year’s proposed spending is lower than the B$5.6 billion budget for the 2016/2017 Financial Year, which was lower than the 2015-2016 spending of B$6.3 billion and the previous year’s figure of B$7.3 billion.
Meanwhile, the expected government income for the 2018/2019 Financial Year is projected to be $3.76 billion, due to the recovery in global oil prices, putting this year’s budget deficit at B$1.54 billion. For the 2017/2018 Financial Year, it was projected to be $3.45 billion.
The projection has taken into account a revenue of $2.509 billion from the oil and gas sector and B$941.33 million from the non-oil and gas sector which is 27.3 per cent of the overall revenue.
This means that the country’s fiscal deficit will hit B$1.54 billion in the new fiscal, which is less than the deficit the country experienced last year.
YB Dato Seri Paduka Dr Awang Haji Mohd Amin Liew said, “Despite the economic challenges we faced over the past years, welfare and prosperity of the people continue to be prioritised and taken care of in government planning. The government is striving to expand the source revenues.
“Although the global oil economic situation of late has shown a positive development, volatile oil price and factors beyond our control have given a significant impact to the nation’s economy as a whole.
“The International Monetary Fund (IMF) in its World Outlook 2018 report has forecast the global economy to grow at 3.9 per cent this year compared to 3.7 per cent in 2017. This growth is supported by encouraging financial climate, rise in investment especially in developed economies, growth in global trade and industry especially in the Asia region and improved business and consumers’ confidence,” the minister said.
The Department of Economic Planning and Development (JPKE) has said that Brunei’s economy will grow by 0.8 per cent by the close of the 2017-2018 fiscal year.
“If such forecast is accurate, then the nation has recorded the first positive growth since 2013. The forecast is based on growth in both oil and gas and non-oil and gas sectors,” the minister said.
“During the 2016-2017 fiscal when the global oil prices were low, Brunei recorded a deficit of B$2.6 billion, which was 16.6 per cent of the GDP. In the 2017-2018 fiscal, the government is expected to record a reduced deficit due to rise in global oil prices.
“However, the energy price movements will continue to be difficult to predict due to several factors.
“In an effort to build economic growth and to ensure that the prosperity of the nation continues to be upheld and enjoyed by generations to come, the focus is given to fiscal consolidation and fiscal sustainability by emphasising the aspect of cost effectiveness, pro-business and prudent spending without affecting productivity and government revenues in the long term,” the minister added.
The theme for the nation’s 2018-2019 budget is ‘Productive and Innovative Expenditure to Maintain Nation’s Prosperity’. To support the theme, the expenditure has five focal elements, namely prudent spending; establishing job opportunities and building capacity; enhancing productivity through innovation; facilitating business and upholding public welfare.