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Budget Snapshot

Budget Snapshot

The Budget 2022, as announced on 29 October 2021, is formulated based on Three Integral Goals (Thrusts):

 

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The Budget goals are anchored on the spirit of inclusive prosperity themed “Keluarga Malaysia, Makmur Sejahtera” (A Prosperous Malaysian Family).

Malaysia 2022 GDP growth is expected at around 5.5% to 6.5%, an expansion from the expected growth of 3% to 4% this year. Fiscal deficit is expected to be around 6% to 6.5% of GDP next year, an improvement from 6.5% to 7% this year.

 

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The Budget 2022 of RM332.1 billion is expansionary and bigger than the RM322.54 billion under the Budget 2021. It has thus emerged as the country’s biggest to date. The budgeted revenue for 2022 is RM234 billion, leading to a fiscal deficit of RM98 billion, which is expected to moderate to 6% of GDP. This is necessary to ensure an accelerated return to pre-covid norms sustainably.

 

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RM233.5 billion has been allocated for operating expenses compared to the RM236.5 billion Budget 2021 allocation. This is a reduction of RM3 billion compared to the previous year’s allocation. Meanwhile, the development expenditure totalling RM75.6 billion is allocated for 2022, higher than the 2021 allocation by RM6.6 billion. The remaining RM23 billion is for disbursement under the COVID-19 Fund.

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For more information, click here: http://bit.do/SALIHINBudget2022

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Author(s)

Mohd Faried Jamil
Executive Director,

Tax


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