Finance proposes national budget of $4.9b

THE Ministry of Finance (MoF) yesterday presented a budget proposal of $4.9 billion for the fiscal year 2010/2011 for approval of the State Legislative Council.

The budget is designed to fund plans and initiatives geared towards stimulating the Brunei economy, enhancing the level of civil service as well as raising the level of welfare of its citizens, Second Minister of Finance Pehin Orang Kaya Laila Setia Dato Seri Setia Hj Abdul Rahman Hj Ibrahim said.

It also aims to ensure a strong and competitive fiscal position, increase government revenues, revise rates for government services without affecting lower income groups and intensify competition within the country's investment environment to attract more foreign direct investment.

Pehin Dato Hj Abdul Rahman gave the assurance that the government would ensure proper financial management to avoid unnecessary spending by monitoring expenditure that does not contribute towards the objective and focus of the identified plans.

From the proposed budget, 18.55 per cent or $1.04 billion will go to the defence and security sector to strengthen the disaster management and disease control.

The Ministry of Home Affairs (MoHA) will be given $5 million to execute the operations and management of national disaster plans while another $5 million will go the Ministry of Health to control communicable diseases. The MoF will also receive a $5 million budget.

Meanwhile, a total of $40.4 million will also be allocated to speed up repair, maintenance and improvement works for infrastructure and public facilities, such as drainage systems, water and electric supply and communication systems.

Over $327 million has been allocated to the social welfare and poverty eradication sector.

The Ministry of Culture, Youth and Sports (MCYS) will receive $3 million to carry out research studies on the Poverty Eradication Programme; $9 million for financial aid to qualified individuals and households; a total of $23.4 million is also allotted to finance the Supplemental Contributory Pension (SCP) which came into effect on January 2010.

The figures do not include the $340.3 million that is already allocated for the "catch-up" SCP contribution for qualified employees, said the minister.

The Village and Mukim Economic Activity account will receive $200,000 on top of the current budget of $220,000 for activities under Village and Mukim Consultative Council.

A total of $656.3 million is allocated for the construction sector and $20 million for the National Padi Plantation Project under the Ministry of Industry and Primary Resources (MIPR) for national food security.

Several projects were identified to further expand and strengthen the private sector. A total of $100,000 is allocated to the Young Entrepreneurs Project under the MIPR. Another $200,000 is for the repair of the jetty at the Aquaculture Development Centre for the purpose of supplying sea water for research work.

Economic activities at the mukim and village level will also receive $200,000 to encourage the exploration of new products unique to the respective areas that can be marketed outside the country.

A significant portion of the budget is also channelled towards human resource development and capacity building, but the minister did not state the exact amount. An emphasis will be given to building proper education infrastructure.

The Brunei Times