PM Anwar revises 2023 budget upwards to RM388.1 billion, biggest allocation in Malaysia’s history

KUALA LUMPUR: Malaysian Prime Minister Anwar Ibrahim re-tabled the budget for 2023 on Friday (Feb 24), revising it upwards to RM388.1 billion (US$87.49 billion). 

This makes it the largest allocation in Malaysia’s history, as the government continues to provide support to steer the economy, Bernama reported, citing the finance ministry.

The budget allocation is an upward revision from the RM372.3 billion budget tabled by the previous government led by Ismail Sabri Yaakob in October 2022, which could not be passed before parliament was dissolved.

According to Bernama, RM289.1 billion has been set aside for operating expenditure while RM99 billion has been allocated for development expenditure, including RM2 billion as contingency savings.

A substantial allocation of 23.5 per cent will be provided for emoluments, subsidies and social assistance (15.2 per cent), economic (14.3 per cent), debt service charges (11.9 per cent), as well as supplies and services (8.3 per cent). 

Additionally, there will are retirement charges (8.0 per cent), social (6.9 per cent), security (3.0 per cent), grants and transfers to state governments (2.1 per cent), general administration (1.0 per cent) and others (5.8 per cent).

The government also projects that economic growth will be around 4.5 per cent, said Mr Anwar.

The prime minister also said that Malaysia will introduce a luxury goods tax this year and look into introducing a capital gains tax in line with international standards. 

This is a developing story, please refresh for updates.