Economists and businessmen said the proposals to adjust the 2016 Budget given the slump in oil prices which affected the government revenue were practical.
They said the adjustments were based on the reality of the current economic situation since the moves will determine the behaviour and ultimately the resource allocation decisions.
Prime Minister Datuk Seri Najib Razak, in his address at the Finance Ministry here on Friday, said adjustments to Budget 2016 will be tabled soon amid a challenging new year.
He said the adjustments will involve, among others, measures to optimise expenditure, taking into account the role of government-linked companies and having the government continue to champion the well-being of the people.
"When it comes to budgeting, there are areas which are not within our control, such as the drop in oil prices," he said.
Bank Islam Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid, said the government needed to be realistic and, to a large extent, the economic cycle has to be considered as well when making the assumption.
"So far, the government has taken the necessary steps to ensure the country would be able to cope with such challenges by reducing their dependence on oil-related revenue," he told Bernama here Friday.
He said the share of oil revenue's contribution to the government has declined from 41 percent in 2009 to an estimated 14 percent in 2016.
However, he said, Malaysia was relatively better compared to the Gulf Cooperation Council countries where oil revenues accounted for over two-thirds of the total government revenue.
On the implication of budget adjustments to Malaysia's fiscal deficit target this year at 3.1 percent, Mohd Afzanizam said: "Slightly higher revision would not be too bad for development expenditure."
He said the consumers were expected to remain cautious in their spending due to weak sentiment.
"Therefore, we need some catalysts to ensure economic growth will not be severely affected," he said.
Meanwhile, Jobstreet.com Country Manager, Chook Yuh Yng, said the adjustments reflected the realistic economic situation of 2016 and were vital to ensure it was under control.
"At these challenging times, it is vital to look at how to make the situation better. Anything that can improve the country's competitiveness is welcomed especially with the ASEAN economy opening up," she told Bernama.
Agriculture and Agro-based Industries Minister, Datuk Seri Ahmad Shabery Cheek, said he will make sure the incentives for small farmers and fishermen will not be affected in the budget adjustments.
He said these incentives should be maintained to help farmers and fishermen face high costs of living.
Bernama
Sat Jan 09 2016
Experts say the adjustments are based on the reality of the current economic situation since the moves will determine the behaviour and ultimately the resource allocation decisions.
Pendekatan berhemah, waspada perlu dalam kes babitkan wartawan Bloomberg - Johan Jaaffar
Tan Sri Johan Jaaffar menggesa pihak polis untuk mengambil pendekatan berhemah, penuh waspada dan penuh pemahaman dalam mengendalikan kes membabitkan seorang wartawan Bloomberg, Ram Anand.
Filipina, AS tembak 'tentera penceroboh' dalam latihan di Laut China Selatan
Tentera Amerika Syarikat dan Filipina melepaskan tembakan peluru berpandu dan artileri ke arah pasukan 'tentera penceroboh' dalam latihan perang di pantai utara Filipina pada Isnin.
Rakaman dashcam puting beliung di Nebraska
Visual yang anda saksikan tadi adalah rakaman video kamera papan pemuka (dashcam) yang menunjukkan detik puting beliung di Nebraska pada 26 April lalu.
Rakaman itu menunjukkan puting beliung dahsyat itu memusnahkan bangunan di Lincoln di Nebraska.
Rakaman itu menunjukkan puting beliung dahsyat itu memusnahkan bangunan di Lincoln di Nebraska.
Kenakan sekatan, hanti eksport senjata ke Israel - OIC
Pertubuhan Kerjasama Islam (OIC) mengecam 'pembunuhan beramai-ramai' di Gaza dan menggesa 57 negara anggotanya mengenakan sekatan ke atas Israel dalam resolusi yang diterima pakai pada penghujung sidang kemuncaknya di Gambia pada 5 Mei.
Qantas Airways sedia bayar penalti 100 juta dolar Australia
Qantas Airways berkata pada Isnin bersetuju untuk membayar penalti sebanyak A$100 juta dolar Australia untuk menyelesaikan tuntutan mahkamah susulan kes menjual tiket yang telah dibatalkan.
Putin angkat sumpah untuk penggal kelima pada selasa
Majlis itu yang dijadualkan berlangsung di Kremlin, menandakan permulaan penggal selama enam tahun untuk pentadbiran Putin yang memenangi 87 peratus undi semasa Pilihan Raya Presiden yang berlangsung pada Mac.
Faisal kini dirawat di ICU, perlu jalani beberapa pembedahan
Pemain skuad kebangsaan, Faisal Halim, kini menjalani rawatan di Unit Rawatan Rapi (ICU) susulan kejadian disimbah asid di sebuah pasar raya di Kota Damansara, Petaling Jaya.
Jemaah wanita dinasihat kurangkan pergerakan jika disahkan hamil
Ada nasihat siberikan Pengarah Operasi Madinah (Perubatan) Dr Mahyin Kudong kepada jemaah haji wanita yang disahkan hamil semasa musim haji baik sebelum atau selepas tiba di Tanah Suci.
Anak akan rindu nyanyian 'live' Hail Amir
Ridauddin Daud, Wartawan Astro AWANI
Polis tingkat kawalan keselamatan pemain TFC
Polis Terengganu meningkatkan kawalan keselamatan terhadap pemain Terengganu FC susulan insiden serangan yang menimpa dua pemain bola sepak tempatan minggu lalu.