Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Oct 29): The Ministry of Finance (MoF) said the Malaysian federal government’s total expenditure is budgeted to be higher at RM332.1 billion in 2022, attributed to higher operating expenditure (OE) at RM233.5 billion and development expenditure (DE) at RM75.6 billion.

This is in line with the government’s commitment to provide adequate fiscal support to revitalise the domestic economy, which is contending with the impact of Covid-19-driven movement restrictions to curb the spread of the pandemic.

According to the MoF's 2022 Fiscal Outlook and Federal Government Revenue Estimates report, which was published on Friday (Oct 29), the remaining RM23 billion under the federal government’s budgeted total expenditure is for disbursement under the country's Covid-19 Fund. 

“The government will continue its expansionary budget policy in supporting the national development agenda as outlined in the 12th Malaysia Plan (12MP),” said the MoF, which indicated that the federal government’s 2022 revenue collection is estimated to be higher at RM234 billion compared to the 2021 revised estimate of RM221.02 billion.   

Meanwhile, the 2022 OE estimate at RM233.5 billion is higher than the 2021 revised estimate of RM219.6 billion while the 2022 DE estimate at RM75.6 billion is an increment from the 2021 revised estimate of RM62 billion, the MoF said.

According to the MoF, the increase in OE is mainly due to supplies and services, debt service charges, as well as emoluments.

Meanwhile, the higher DE allocation will be mainly directed towards the implementation of programmes and projects under the 12MP, which include the Gemas-Johor Bahru electrified double-tracking project besides the Malaysia-Singapore rapid transit system link and Pan Borneo Highway projects, the MoF said.

With a higher ceiling for the Covid-19 Fund, the government will allocate RM23 billion for the stimulus and economic recovery measures, said the MoF, which indicated that the fund’s 2021 revised estimate stood at RM39 billion.

“After considering revenue growth and expenditure requirement, the (country’s) fiscal deficit is expected to moderate to 6% [of] GDP (gross domestic product),” said the MoF, which indicated in its Economic Outlook 2022 report, which was also published on Friday, that the Malaysian economy is forecast to expand between 5.5% and 6.5% in 2022.

In the 2022 Fiscal Outlook and Federal Government Revenue Estimates report, the MoF said the government is committed to providing adequate fiscal support to revitalise the domestic economy back to its growth potential.

"Hence, the resumption of fiscal consolidation will be on a more gradual trajectory, guided by the medium-term fiscal framework,” the MoF said.

For more stories on the Economic Report 2021/2022, click here.

Edited ByChong Jin Hun
      Print
      Text Size
      Share