The Federal government’s revenue is seen at RM904.83 billion for the remainder of the 12th Malaysia Plan (12MP) from 2023 to 2025, resulting in a deficit of RM257.93 billion, the Ministry of Economy stated.
For the whole of the 2021 – 2025 period, revenue has been revised upwards to RM1.43 trillion as compared with RM1.22 trillion estimated earlier, the ministry said in its Mid-Term Review of the 12MP report released today.
Quoting data from the Ministry of Finance, it said during the first two years of 12MP, the Federal government’s revenue was RM528.10 billion.
Gross development expenditure is set to be RM264.37 billion for 2023 – 2025 and RM400.20 billion for 2021 – 2025, unchanged from its original target.
In the report, the ministry said in enhancing fiscal sustainability, emphasis will be given to strengthening fiscal governance, expanding the revenue base, retargeting subsidies, enhancing budget management, as well as improving debt and liabilities management towards achieving a fiscal deficit target between 3.5 per cent and 3 per cent to Gross Domestic Product in 2025.
Fiscal management will be improved by establishing legislation on fiscal responsibility, and developing new acts on debt and procurement.
Additionally, it said, revenue management will be improved by widening the tax base, and adopting technology and digitalisation to enable better collection.
