The government has increased the budget and expenditure ceiling for the 12th Malaysia Plan (12MP) by RM15 billion, raising the total amount allocated to RM415 billion.
Prime Minister Datuk Seri Anwar Ibrahim said that the increase was necessary to enhance the management quality and reallocate subsidies to cover basic needs.
The tabling of the mid-term review (MTR) in parliament for 12MP further highlighted the initiative’s emphasis on sustainable economic growth, as well as transparent, fair and equitable wealth distribution across all economic sectors.
“The increase in allocation is to prioritise the people’s well-being while improving the quality of management and retargeting subsidies in meeting the people’s basic needs. Hence, the government will spend RM90 billion per year (2023 to 2025) to upgrade the people’s well-being,” the prime minister told Dewan Rakyat.
12MP was originally tabled by former government
The 12MP was tabled by the former Prime Minister, Dato’ Sri Ismail Sabri Yaakob, back in September 2021, and had an estimated development allocation of RM400 billion.
Anwar, who is also the finance minister, said that the first two years of the 12MP have led to the country averaging an annual gross domestic product (GDP) of 5.9% between 2021 and 2022.
During the tabling, the subject of reintroducing the Goods and Services Tax (GST) was also discussed.
While Economy Minister Rafizi Ramil did not rule out the possibility of reintroducing the tax system, he did say that the government will first prioritise its strategy to widen the nation’s revenue base and redevelop and introduce the Captial Gains Tax, which is slated to be implemented in 2024.
“The government will stick to our strategy and is open to go through any ways to achieve fiscal sustainability through a wider revenue base.
“Hence, whether it is going to be the GST, Capital Gains Tax or any form of direct and indirect tax, we will only decide on a case-to-case or year-to-year basis.” Rafizi said during the tabling.
