The Ministry of Finance (MoF) has announced an RM332.1 billion Budget 2022, with federal revenue projected to achieve RM234 billion, or 5.9 per cent more than 2021 and it can potentially rise to RM240.1 billion.
Three-quarters of revenue is expected to come from tax revenue worth RM171.3 billion, or 73.2 per cent of the total estimated revenue.
Income tax to contribute 35.7 per cent, indirect taxes 13.3 per cent, and other direct taxes 2.6 per cent.
The government intends to provide RM233.5 billion for operating expenditure, RM75.6 billion for development expenditure and RM23 billion under the COVID-19 Fund.
Minister of Finance Tengku Zafrul Aziz says next year, the country’s economy is projected to continue to grow between 5.5 to 6.5 percent based on the strong economic fundamentals and diverse structure.
“However, this performance also depends on other factors, such as the success of pandemic control, the effectiveness of the implementation of vaccination programs as well as the robustness of world economic and trade prospects,” he says.