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KUALA LUMPUR: The government will restructure allocations to achieve a target of at least 5% savings from the remaining operating allocation for 2022 to help finance part of the additional expenditure relating to subsidies for the welfare of the people.

The Finance Ministry will finalise and issue restricted warrant to inform on the amount of allocation that will be reduced.

According to a treasury circular issued by the ministry, the global economic uncertainty, international geopolitical tensions, as well as the steep increase in global commodities and food prices have caused high inflationary pressures.

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Therefore, the government is taking measures to implement subsidies for essential goods as well as price control to reduce the inflationary impact. The expenditure for subsidies and assistance are projected to reach RM77.7bil compared with the RM31bil allocation approved in Budget 2022, Bernama reported.

Treasury secretary-general Datuk Seri Asri Hamidon said programmes or activities would be restructured.

“Restructuring priorities for organisations need to focus on reducing duplication of functions whether within the organisation or outside,” he added.