KUALA LUMPUR: The government will not revise Budget 2015 amid the slump in global crude oil prices as the three per cent fiscal deficit target in 2015 will not be affected, the Dewan Negara heard today.
Deputy Finance Minister Datuk Chua Tee Yong said the decline in oil revenue will be balanced by substantially reduced fuel subsidy payouts with the implementation on Dec 1 of a managed float system to determine prices of RON 95 petrol and diesel.
"Relatively speaking, the current drop in global crude oil prices will not substantially affect the 2014 revenue estimates, and the average price of Tapis crude oil between January and Nov 25 was US$107 per barrel," he said in reply to a question from Senator Mohd Khalid Ahmad on whether Budget 2015 would be revised with Brent crude falling to US$82 per barrel.
Mohd Khalid also wanted to know the the federal government's level of dependency on oil-related revenue, and the average annual Brent crude oil price, since 2010.
Chua said the federal government's revenue estimates are not based on projected average Brent crude prices but on projected average Tapis crude prices, with the revised 2014 and 2015 revenue estimates based on a projected Tapis price of US$110 and US$105 per barrel respectively, he said.
Chua said oil-related revenue contributed 35.4 per cent or RM56.5 billion to total revenue in 2010.
"In 2011, the figure was 35.8 per cent or RM66.4 billion, in 2012 it was 33.7 per cent or RM70.2 billion while in 2013 the contribution was 31.2 per cent or RM66.6 billion," he said.
The percentage contribution is expected to decline in 2014 to 29.7 per cent or RM66.9 billion of the total, he said, pointing out the government's declining dependency on oil-related revenue.
He said average Brent crude prices per barrel were US$79.73 in 2010, US$111.05 in 2011, US$111.94 in 2012, US$108.82 in 2013 and US$104.64 between January to October this year.
-- BERNAMA