PM slashes spending in Budget 2010

UPDATED 9.25PM Next year's allocation totalled RM191.5 billion - 11.2% lower than the revised allocation of RM215.7 billion for 2009.

The slashing in spending is a move to rein in a fiscal deficit swollen by stimulus measures aimed at pushing the economy out of recession. Although Najib provided few clues as to how the reductions would be realised, he promised an ambitious cut in the budget deficit in 2010 from its highest level in more than 20 years that would come from reduced "operatingexpenditure" (-13.7 percent), lower food and fuel subsidies (-14.7), a sensitive political issue for an unpopular government, and less money for development spending (-4.5 percent).