According to reports, global weak oil prices have severely affected Brunei’s economy and the government’s capacity to spend will be limited as 90 per cent of the government’s revenue comes from oil and gas sector.
The second finance minister reported that Brunei’s deficit was at $213 million in fiscal year 2014/2015 and could post a larger deficit than the previously projected $2.28 billion for fiscal year 2015/2016. Future government expenditure will be made based on priority, needs, and the government’s capability to spend, as well as its significance in generating economic activities and providing job opportunities to locals.
According to Hj Ibrahim Hj Bagol, head of scholarship section at the Ministry of Education, there are no immediate plans to cap the number of scholarships for 2016/2017 but it might change when the new government budget is disclosed in March.
Commentary
The continued decline in the government’s revenue could lead to reduce number of scholarship awards for 2016/2017 as budget cut is expected.