According to the Ministry of Finance (MOF), a total of RM322.5 billion or 20.6 percent of the GDP will be allocated in the Budget 2021.
RM236.5 billion (73.3 percent) of the allocated Budget will be dedicated for operating expenditure, RM69 billion (21.4 percent) for development expenditure (DE) and RM17 billion (5.3 percent) for the Covid-19 fund.
The federal government’s revenue in 2021 is expected to increase by 4.2 percent to RM236.9 billion or 15.1 percent of GDP, on the back of improving economic growth and business prospects.
As for the Covid-19 Fund, a sum of RM17 billion will be allocated in 2021 to address the impact of the ongoing pandemic on the economy.
The Ministry has also allocated RM8.9 billion for the education and training sub-sector to provide better education facilities.
The RM69 billion allocated in 2021, an increase of 38 percent from 2020, is to support economic growth and provide a better quality of life and living environment through the implementation of new and ongoing programmes and projects, mainly in the areas of education, healthcare, housing, transportation and public utilities.
In terms of allocation by sector, the economic sector remains the largest recipient at 56.4 percent of DE, followed by social (26.7 percent), security 11.2 percent and general administration 5.7 percent.
The transport sub-sector accounts for the largest share at 21.8 percent or RM15 billion of total DE.
Expenditure for the social sector, amounting to RM18.4 billion or 26.7 percent of total DE, is the second-largest component in DE, with RM8.9 billion allocated for the education and training sub-sector to provide better education facilities.
The health sub-sector remains as a priority sub-sector with an allocation of RM4.7 billion or 6.8 percent of total DE, with spending focused on expanding the health sector and providing an effective national healthcare system. 100,000 health frontliners will receive a one-off payment of RM500.