New direction: Rafizi receiving a warm welcome at the 12th Malaysia Plan Half-Term Review ‘Kick-Off’ Conference organised by the Economic Planning Unit in Putrajaya.
KUALA LUMPUR: The federal government’s revenue is seen at RM904.83bil for the remainder of the 12th Malaysia Plan (12MP) from 2023 to 2025, resulting in a deficit of RM257.93bil, according to the Economy Ministry.
During the 2021 to 2025 period, revenue has been revised upwards to RM1.43 trillion as compared with RM1.22 trillion estimated earlier, the ministry said in its mid-term review of the 12MP report released yesterday.
Quoting data from the Finance Ministry, the federal government revenue was at RM528.1bil during the first two years of the 12MP.
Gross development expenditure is to be RM264.37bil for the 2023 to 2025 period and RM400.2bil for the 2021 to 2025 period, unchanged from its original target.
In enhancing fiscal sustainability, emphasis will be given to strengthen fiscal governance, expand revenue base, retarget subsidies and enhance budget management as well as improve debt and liabilities management towards achieving fiscal deficit target between 3.5% and 3% to gross domestic product in 2025.
Fiscal management will be improved by establishing legislation on fiscal responsibility as well as developing new acts on debt and procurement.
Additionally, it said, revenue management would be improved by widening the tax base as well as adopting technology and digitalisation to enable better collection.
Meanwhile, the economic potential of the regions and states in Malaysia would be further strengthened to attract more quality investments in niche areas by promoting the adoption of advanced technology in the upstream and downstream activities, said the ministry.
It noted the federal and state regional development agencies would be encouraged to streamline development priorities by leveraging uniqueness and available resources in each state.
“Basic infrastructure provisions in less developed states will be scaled up and talent development programmes will be intensified to ensure equal development opportunities and improve regional balance,” it said.
The ministry said priority would be given to enhancing economic activities within the subregions by providing better infrastructure and facilities.
Measures would be undertaken to intensify regional development in potential growth areas and leverage federal and state agencies’ cooperation.
“Emphasis will be given to accelerate strategic development in the growth areas and entice quality investments in boosting regional growth within the remaining 12MP period,” it added. — Bernama
