PM Anwar revises 2023 budget upwards to RM388.1 billion, biggest allocation in Malaysia’s history
CNA
24 Feb 2023 05:15PM
KUALA LUMPUR: Malaysian Prime Minister Anwar Ibrahim re-tabled the budget for 2023 on Friday (Feb 24), revising it upwards to RM388.1 billion (US$87.49 billion).
This makes it the largest allocation in Malaysia’s history, as the government continues to provide support to steer the economy, Bernama reported, citing the finance ministry.
The budget allocation is an upward revision from the RM372.3 billion budget tabled by the previous government led by Ismail Sabri Yaakob in October 2022, which could not be passed before parliament was dissolved.
According to Bernama, RM289.1 billion has been set aside for operating expenditure while RM99 billion has been allocated for development expenditure, including RM2 billion as contingency savings.
Malaysia Prime Minister Anwar Ibrahim holding the budget booklet on Feb 24, 2023. (Photo: CNA/Fadza Ishak)
A substantial allocation of 23.5 per cent will be provided for emoluments, subsidies and social assistance (15.2 per cent), economic (14.3 per cent), debt service charges (11.9 per cent), as well as supplies and services (8.3 per cent).
Additionally, there will are retirement charges (8.0 per cent), social (6.9 per cent), security (3.0 per cent), grants and transfers to state governments (2.1 per cent), general administration (1.0 per cent) and others (5.8 per cent).
The government also projects that economic growth will be around 4.5 per cent, said Mr Anwar.
A slew of initiatives were announced to help the middle class and lower income. Those who are earning between RM35,000 and RM100,000 annually will have their income tax rate reduced by 2 per cent. Currently, they pay between 13 per cent and 21 per cent, depending on their income.
However, those who earn between RM100,000 and RM1 million annually will have their tax rate increased by 0.5 per cent to 2 per cent going forward.
The government will also top up RM5,000 in the Employees Provident Fund (EPF) accounts for those who have a balance of less than RM10,000. At the height of the COVID-19 pandemic, several rounds of withdrawals were permitted, resulting in heavily depleted pension savings.
The prime minister also said that Malaysia will introduce a luxury goods tax this year and look into introducing a capital gains tax in line with international standards.
Source: Agencies/aw
Unity Government allocates RM388.1 billion budget for 2023 - PM Anwar
Bernama
Februari 24, 2023 17:45 MYT
Unity Government allocates RM388.1 billion budget for 2023 - PM Anwar
Anwar said the government would also reduce fiscal deficit in 2023 by five per cent from 5.6 per cent in 2022. - Jabatan Penerangan Malaysia
KUALA LUMPUR: The Unity Government led by Prime Minister Datuk Seri Anwar Ibrahim today tabled the national budget for 2023 totalling RM388.1 billion, of which RM289.1 billion allocated for operating expenditure and RM99 billion for developing expenditure including RM2 billion for contingency savings.
Anwar, who is also Finance Minister said in line with the expanding fiscal policy, the allocation for development was increased to RM97 billion compared to RM71.6 billion last year.
"The increase is to enable focus to be given to programmes to eradicate poverty, repair public infrastructure and rural facilities.
"...with the reform in government procurement procedures, it will be ensured that this increased allocation is fully utilised for the benefit of the people," he said when tabling Budget 2023 in Parliament today.
This is the first budget to be tabled by the Unity Government led by Anwar.
The previous government under Prime Minister Datuk Seri Ismai Sabri Yaakob had tabled Budget 2023 totalling RM372.3 billion in October last year but Parliament was dissolved for the 15th general election before it could be debated and passed.
Anwar said Budget 2023 will be the first step to explore the Malaysia MADANI development framework which focuses on 12 main initiatives based on three objectives namely driving an inclusive and sustainable economy, institutional reform and governance to restore confidence, and social justice to reduce imbalance.
He said the Unity Government is determined to control the fiscal position including dealing with national debt and at the same time continue to support inclusive and sustainable economic growth.
The Prime Minister said the tabling of the budget today, which is dubbed the MADANI Budget, reflects a noble value system capable of addressing current challenges, including the global economic uncertainty.
"After listening to the grievances of the people and the problems voiced out by the members of Parliament in this august hall, I decided to table a budget by presenting facts and actual numbers and will not try to confuse people's minds with impressive data," he said.
Anwar said the government would also reduce fiscal deficit in 2023 by five per cent from 5.6 per cent in 2022.
He said the government is determined to achieve a sustainable permanent deficit level in the medium term with a target of 3.2 per cent to Gross Domestic Product (GDP) by 2025 subject to continued strong economic growth.
-- BERNAMA