Caretaker Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz has commented that the national budget, Budget 2023, may see some finetuning when it is re-tabled after the new government is elected. This is in order to match Malaysia’s updated economic situation at that time, which may be affected by various factors.

“There may be some adjustments based on economies during the time. I must be frank with you. We have to see (the situation of) the global economy that would affect the Malaysian economy,” said Tengku Zafrul in a pre-recorded segment at The Straits Times’ inaugural Asia Future Summit. He was asked whether Malaysians can expect Budget 2023 to be re-tabled as it is, or close to its first iteration.

The minister also stated that the government cannot confirm whether it will introduce new policies – such as targeted subsidies and the reimplementation of the Goods and Services Tax (GST) – after the upcoming general election (GE15). Such policies are widely deemed to be “less populist”.

“We will obviously not commit ourselves to any drastic measure that was not outlined for fear that choking the growth momentum,” said Tengku Zafrul, although he also acknowledged that the government does need to increase its revenue collection as it is quite low, and that the Budget would see a deficit going down.

In 2023, the federal government’s revenue collection is expected to decrease by 4.4% to RM272.6 billion – equivalent to 15% of Malaysia’s gross domestic product (GDP). This is due to anticipated lower non-tax revenue collection, as reported in the Fiscal Outlook and Federal Government Revenue Estimates 2023 study released by the Ministry of Finance. The report also noted that non-tax revenue in 2023 is expected to decline by 23% year-on-year to RM67 billion, attributed to lower dividends paid by government entities.

That said, Tengku Zafrul defended the first tabling of Budget 2023 as necessary, stating that it is an “inclusive, more progressive”, and “responsible budget”. On top of that, it is also a sustainable budget. He further emphasised that Budget 2023 not only prioritised spending in the most important sectors for economic growth, but also empowered the relevant groups and assisted underdeveloped areas.

Budget 2023 was originally meant to be tabled on 28 October 2022, but was subsequently brought forward to 7 October. Three days later, the Parliament was dissolved by caretaker Prime Minister Datuk Seri Ismail Sabri Yaakob, who later also confirmed that Budget 2023 has to be re-tabled again in Dewan Rakyat before the end of 2022.

(Source: Malay Mail)

• TAGS:
• Budget 2023
• Datuk Seri Tengku Zafrul Abdul Aziz
• Dewan Rakyat
• Fiscal Outlook and Federal Government Revenue Estimates 2023 Study
• GE15
• General Election
• Goods And Services Tax
• Government Subsidies
• GST
• Targeted Subsidies