| Hakim Hayat |

MEMBERS of Parliament yesterday unanimously passed a national budget of BND5.86 billion for the Financial Year 2019/2020 following 10 days of deliberations in the 15th Legislative Council (LegCo) session.

The 2019/2020 allocation, which goes into effect on April 1, is BND560 million more than the amount set aside for the previous fiscal (BND5.3 billion).

Outlining the key priorities of the national budget – which includes attracting more investment to boost the country’s economic diversification efforts – earlier in his national budget proposal speech on the second day of sitting in Parliament, Minister at the Prime Minister’s Office (PMO) and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah cautioned that another wave of budget deficits is expected for the new financial year, due to sluggish gross domestic product (GDP) growth caused by falling revenues from the domestic oil and gas sector over the last few years.

Government projections indicate that the dominant oil and gas sector is expected to generate BND3.18 billion in revenue for the Financial Year 2019/2020, while the non-oil and gas sector is estimated to contribute BND1.18 billion.

Total revenues for 2019/2020 is projected at BND4.36 billion.

A BND2.2 billion deficit was recorded in the Financial Year 2017/2018, and the country is expected to record another deficit for the present 2018/2019 fiscal despite the recovery in global oil prices.

The four main focusses of the 2019/2020 national budget are: increasing investment activities; facilitating businesses; generating competent and employable human capital; and preserving public welfare.

The minister also underlined the focus of the new national budget (centred on the theme ‘Investing in Our Future’), which will target long-term economic growth and priorities in human capital investment.

He also highlighted the importance of accelerating Public Private Partnership (PPP) and Foreign Direct Investment (FDI) initiatives to help the country achieve its economic diversification goals, ensure fiscal stability and resilience, and reduce its dependence on oil and gas revenues.

The bulk of the 2019/2020 national budget allocation goes to the Ministry of Finance and Economy (MoFE), which will be receiving an allocation of over BND814 million to help in its efforts to continue strengthening the fiscal and economic position of the country and explore opportunities to expand the government’s revenue source base from the non-oil and gas sectors.

Other measures to fortify the country’s financial position include facilitating trade and increasing investment activities and joint-venture partnerships or PPP, as well as enhancing service delivery to the public.

The Ministry of Primary Resources and Tourism, meanwhile, has seen a huge jump in budget allocation for the upcoming financial year, as the ministry ramps up projects to help boost tourist arrivals and tourism revenues to the country and help boost domestic rice production to achieve national food self-sufficiency.

Taking the biggest cut of all the ministries is the Ministry of Development (MoD), with its allocation dropping to just over BND218 million for the new fiscal, down from its 2018/2019 allocation of BND807 million.

A budget of BND800 million for the National Development Plan for the upcoming financial year was also unanimously approved.

The 15th LegCo session will resume and draw to a close tomorrow, with members expected to deliver the session’s closing motion and appreciation statements.