Finance Minister II Husni Hanadzlah wants ministries to spend their operating budgets wisely, or risk having it slashed in the recalibrated Budget 2016.

Husni said unlike previously, the ministries' key performance index (KPI) would now be based on how much they save, not how much they spend.

“Last time, our KPI was based on input. When we give a ministry RM1 billion, they need to spend all of it according to their job objectives.

“But now, it is outcome-based budget. This means that when we allocate RM1 billion, they (ministries) need to spend RM900 million to be deemed to have achieved a good result," Husni was quoted as saying by The Star .

Speaking after attending a Chinese New Year open house in Ipoh yesterday, Husni said, among others, the ministries can save up on receptions and caterings.

“Ministries should also cut down on spending on receptions. We used to have meals at meetings, but now we only have drinks,” he said.

The second finance minister also urged ministries to learn from their mistakes as highlighted by the auditor-general's report.

Prime Minister Najib Abdul Razak revised his Budget 2016 in January amid an economic downturn and the continued slump in world oil prices coupled with the drastic fall in the value of the ringgit.

Among others, the government plans to slash its expenditure by RM9 billion.