KUALA LUMPUR, Aug. 6 (Xinhua) -- Malaysian Prime Minister Mahathir Mohamad said Monday that the development budget allocated for the Prime Minister's Department this year is expected to reduce by 60 percent to 4.93 billion ringgit (1.21 billion U.S. dollars) after the implementation of cost rationalization plan.

In his written response to the parliament, Mahathir said the initial development expenditure for the department was 12.26 billion ringgit, but after carrying out initiatives to rationalize government spending, the budget has been cut by as much as 60 percent.

Since he came to power, Mahathir has initiated a series of cost-saving measures. The Prime Minister's Department is a federal government ministry in Malaysia, comprising dozens of agencies and entities, including the Prime Minister's Office and the Deputy Prime Minister's Office.

The savings are taking into account the cancellation of several rental and services contracts involving special envoys and dissolution of National Professors Council.

"However, the actual savings can only be finalized after the rationalization exercise is completed," he added.