Budget Will Balance Rationalising Subsidies And Helping Rakyat Says Pm

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Prime Minister Anwar Ibrahim, who is also finance minister, is set to table the annual budget in the Dewan Rakyat on Friday. (Bernama pic)PETALING JAYA: Prime Minister Anwar Ibrahim has promised that the upcoming federal budget for 2024 will be a balance between the need to rationalise government subsidies and alleviate the burdens of the poor.
In a Facebook post, Anwar said Putrajaya was expected to spend over RM81 billion on subsidies this year, partly due to the rise in the cost of importing food.
“Therefore, a new policy is being formed to reduce the government’s burdens, specifically by rationalising subsidies by ensuring that only those who are in need will be aided, rather than allowing the rich to continue enjoying subsidies.
“There are concerns that this subsidy rationalisation will cause people’s cost of living to rise. I give my assurance that the unity government will do its best to ensure that the budget for 2024 will reduce the burdens of the poor and even the M40 group,” he said.
Anwar, who is also finance minister, is set to table the annual budget in the Dewan Rakyat on Friday.
In June, Anwar said the government was working on implementing targeted subsidies as soon as possible.
Economy minister Rafizi Ramli expects the government to save at least US$1 billion (RM4.73 billion) to US$2 billion (RM9.47 billion) a year from its shift to targeted subsidies, that could begin as soon as the second quarter of 2024.
Earlier today, the 2022 Auditor-General’s Report revealed that Putrajaya spent some RM55.443 billion on various subsidies last year, an increase of 322.1% compared with 2021.
The bulk of these funds were spent on subsidising petroleum products – with RM45.184 billion spent on this, or 81.5% of the total expenditure on subsidies. - FMT

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