Thursday 28 Mar 2024
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KUALA LUMPUR: The Government’s revenue for 2020 to 2022 is expected to be RM764.9 billion or 15% of the nation’s gross domestic product (GDP).

Petroleum-related revenue is projected to be RM149.2 billion or 2.9% of GDP, while non-petroleum revenue is expected to contribute RM615.7 billion or 12% of GDP, said the Ministry of Finance in the 2020 Fiscal Outlook and Federal Government Revenue Estimates report.

“The Government will continue to improve revenue collection through initiatives to broaden the tax base, reduce leakages and explore new sources of revenue,” it said.

The report said the 2019-2021 Medium Term Fiscal Framework (MTFF) has been revised on account of the global economic environment and lower crude oil prices.

As such for the 2020 to 2022 period, the underlying assumptions of the MTFF are based on the projection of real GDP growth of 4.5% to 5% (nominal GDP growth is expected to be between 5.5% to 6%), while crude oil prices are expected to be between US$60 to US$65 a barrel, with an output of 600,000 barrels a day.

In terms of expenditure, the total indicative ceiling is estimated at RM910.4 billion, or 17.8% of GDP, for 2020 to 2022.

Some RM751.4 billion or 14.7% of GDP has been set for operating expenditure, while development expenditure has been allocated RM159 billion or 3.1% of GDP.

Meanwhile, the fiscal deficit is anticipated to average 2.8% of GDP from 2020 to 2022.

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