KUALA LUMPUR (Oct 20): Prime Minister Datuk Seri Najib Razak expects the country's gross domestic product (GDP) growth to accelerate to 5% next year, from a projected 4%-4.5% for 2016.

"We are on the right trajectory, with the economy expected to improve still further in 2017, with growth of up to 5%," he said in a statement today.

Najib said the government will continue to ensure economic indicators such as inflation levels, growth rates and debt levels remain strong and resilient, reflecting the core fundamentals of the economy.

"We continue to fulfil our promises to the people in a manner that is fair and inclusive," he added.

Naqib said Budget 2017, which will be announced tomorrow, will focus on raising the disposable income of the rakyat and encouraging upscaling, reskilling and entrepreneurship training.

"The budget will also seek to mitigate the rising cost of living, provide more affordable houses and funds for maintenance. (In addition, there will be) substantial measures on education and allocations for the provision of quality healthcare services," he said.

The prime minister also dismissed Budget 2017 as one of an election budget, saying it is a "commitment budget". "Others may put short-term political gain first, but this government will not."

"We commit to being prudent and creative in optimising expenditure, to ensure delivery for the people. And we commit to a comprehensive, inclusive Budget that will fulfil our promises to the people," he said.

Despite the challenging global environment, he believes the measures the government introduced in last year's budget have helped ensure that the economy remains resilient and continues to grow.

"We have a plan, and it is working," he stressed.

Despite fiscal pressures, he said inflation has been kept at low levels, and the rakyat as a whole are better off today, than they were a year ago.

Najib also recognised that there are challenges the government is facing, and must put in place policies that address long-term structural changes.

"We will continue our efforts to improve the Bottom 40 (B40), as well as the Middle 40 (M40)," he said, with focus on both the people economy and the public economy.

"The overall happiness and welfare of the people is key objective," he added.

"In line with our commitment to put the people first; we intend to accelerate economic growth, empower human capital, drive education, increase connectivity, strengthen inclusive development and improve public service delivery.