Minister of Finance Tengku Datuk Seri Zafrul Abdul Aziz is presenting the much-anticipated national Budget 2023 under the theme of “Strengthening Recovery, Facilitating Reforms Towards Sustainable Socio-Economic Resilience of Keluarga Malaysia” in Parliament today (Friday, Oct 7).
The Government formulated Budget 2023 based on three priority areas:
– Reinforcing the momentum of economic recovery by ensuring it is not just a recovery in GDP terms but also a job and income recovery for Malaysians and businesses;
– Strengthening economic resilience against future shocks through reforms towards better social protection especially of vulnerable segments of society, a stronger public health system, more sustainable fiscal position to provide buffers against future shocks and by undertaking more targeted forms of subsidies and assistance; and
– Implementing comprehensive reforms in the economic and social aspects for businesses, priority sectors and the nation to emerge more competitive globally while advancing its sustainable development agenda.
Budget 2023 Allocation
Budget 2023 has a total allocation of RM RM372.3bil, lesser than that of Budget 2022 which carried an allocation of RM385.3bil, which stood as the nation’s largest.
Tengku Zafrul said the top three recipients of Budget 2023 are the Finance Ministry (RM67.2bil), Education Ministry (RM55.6bil) and Health Ministry (RM36.1bil), constituting 43.3% of total expenditure.
Services sector is expected to be the main contributor to 2023 GDP growth, which is anticipated to expand by 5.0% in 2023.
Economy is expected to grow moderately between 4.0% and 5.0% in 2023 versus 6.5% to 7.0% in 2022.
The Bantuan Keluarga Malaysia (BKM) cash aid scheme will be expanded, where households of less than RM2,500 income with five children or more, will receive RM2,500 each.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the government would continue to take proactive measures in safeguarding the welfare of the Malaysian Family.
“RM10 billion is allocated for cash aid under the Welfare Department and BKM,” he said when tabling the 2023 Budget in the Dewan Rakyat today.
He said the 2023 Budget would be driven by 3R – Responsive, Responsible, Reformist. Tengku Zafrul said the 2023 BKM would benefit 8.7 million of recipients with a total allocation of RM7.8 billion.
“BKM 2023 is a comprehensive assistance upgraded from 2020 Bantuan Sara Hidup where five million recipients benefitted with a RM5 billion allocations.”
He said the government wanted to reduce the burden of families with multiple kids, as such, households with four kids are eligible to receive BKM of between RM1,000 and RM2,000.
“For households with an income of between RM2,500 and RM5,000, the aid will be between RM500 and RM1,250 depending on the number of kids they have.
“Senior citizens without spouses and singles will continue to receive RM600 and RM350 in aid respectively depending on their incomes.
“The aid for single mothers and single fathers continues in 2023, and they are eligible to receive a maximum of RM3,000, RM500 more than the RM2,500 they received in 2022.
The government announced it will allocate RM400 million to continue the e-Pemula programme, which will benefit over two million recipients
During the tabling of Budget 2023 today, 7 October, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said, as part of the e-Pemula programme, individuals under the M40 income group earning an annual income of less than RM100,000 will receive RM100 in e-wallet credit.
The initiative, with an allocation of RM800 million, will benefit over eight million M40 recipients.
Tax exemption for women employees
Zafrul said this is to promote cashless transactions. Tax exemption for women employees on income for the assessment years 2023 to 2028 to encourage them to return from work after a career break.
In relation to this, RM11 million to increase screenings through mammogram subsidy and cervical cancer screening.
One-off RM500 cash aid for mothers from households receiving Bantuan Keluarga Malaysia who gives birth in 2023.
Income Tax rate for individuals reduced by two percentage points.
Those in RM250,000-RM400,000 income tax range together with the RM400,000-RM600,000 range will be subject to a 25% tax rate.
EPF voluntary contribution limit will be increased to RM100,000 per year compared to RM60,000 previously.
RM10 stamp duty for properties transferred between family members.
Civil Servants and Pensioners
Aidilfitri aid for civil servants increased to RM600.
RM350 one-off aid for one million retired civil servants.
One-off RM700 special aid for 1.3 million civil servants under Grade 56.
RM100 increment for all civil servants between Grade 11 to Grade 56.
RM100 subsidy for civil servants for insurance coverage.
Monthly aid from Social Welfare Department totaling RM2.5bil to benefit over 450,000 households.