KUALA LUMPUR (Oct 10): Malaysia's Budget 2016, which will be unveiled this Oct 23, will test policy makers' commitment to fiscal discipline amid the pressing need to spend to deliver economic results.
 
The Edge Malaysia business and investment weekly (Edge Weekly), quoting economists, reported in its latest Oct 12-18 issue that the task to balance an expanded budget while maintaining financial prudence would be challenging for the government.
 
“First, government revenue has to meet government spending. Then, there is the overarching need for fiscal discipline for Budget 2016. This means that it has to spend efficiently to achieve the desired fiscal outcomes. At this juncture, I would prefer the government to preserve fiscal ammunition when economic pressures are much worse,” Edge Weekly quoted Malaysia University of Science and
Technology business school dean Dr Yeah Kim Leng as saying.

“The B40 (bottom 40% in terms of income) group should receive financial support from the government, but I think it is more effective to spend on upskilling the lower-income group and create income-generating opportunities than have direct wealth transfer through schemes like BR1M,” Yeah said.

Last month, Second Finance Minister Datuk Seri Ahmad Husni Hanazlah said priority would be given to people-centric projects under Budget 2016.

In a statement, Ahmad Husni said these included affordable housing, besides rural electrification, water supply and road.

Last Monday (Oct 5), Prime Minister Datuk Seri Najib Tun Razak said the government had noted what Malaysians wish to see in Budget 2016.

Najib, who is also finance minister, said this after noting the results of a government survey on the budget. Cost of living, urban housing and livelihood, besides education topped the list of Malaysians' concerns ahead of the budget announcement this month, the survey showed.

For a better understanding on Malaysian economic and budget dynamics, kindly pick up and read the latest issue of Edge Weekly.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.