PETALING JAYA: The National Service programme for 2015 is suspended as part of cost-cutting measures, said Prime Minister Datuk Seri Najib Tun Razak.

"A suspension of the National Service programme for 2015 will save RM400mil, and will allow for the programme to be re-examined and improved," said Najib, who announced revisions to Budget 2015 on Tuesday.

Najib also said that the awarding of grants to statutory bodies, government-linked corporations and government trust funds, especially those that have consistent income and large reserves is expected to save about RM3.2bil.

He added that the government would increase dividend collection from government-linked corporations. "This will contribute approximately RM400mil," said Najib.

He also urged companies to register with the Royal Customs and Excise Department to increase collection of Goods and Services Tax (GST), which is set to kick off on April 1 this year, saying this would contribute RM1bil through the collection of GST.

"As of mid-January 2015, 304,000 companies have been registered," said Najib.

The Prime Minister is adjusting Budget 2015, with both proactive and pre-emptive measures, in move to ensure sustainable development and resilience of the economy.

His announcement at a special function, Tuesday, focuses on actions and policy interventions to handle the changing economic scenario caused by the oil price slump.

When Najib, who is also Finance Minister, tabled Budget 2015 last year with an expected expenditure of RM273.9bil against an expected revenue of RM235.2bil, oil price averaged around US$90 (RM355) per barrel.

But the price has been falling and is expected to drop to as low as US$40 (RM140) in the first six months of this year.

Related stories:

Budget Revision: Full text of Prime Minister's speech

Budget Revision: Highlights

Budget Revision: Visa fee waiver for tourists

Budget Revision: Focus on Malaysian-manufactured goods

Budget Revision: Government postpones electricity tariff hike