Increased BR1M for single individuals and households. Photo courtesy: Sin Chew Daily
Government is expected to achieve the fiscal deficit target of 3% of GDP in 2017. Photo courtesy: Sin Chew Daily
The total budget allocation of RM260.8 billion is 3.4 per cent higher than the recalibrated 2016 Budget. Photo courtesy: Sin Chew Daily
KUALA LUMPUR, Oct 21 (MySinchew) -- Prime Minister cum finance minister Datuk Seri Najib Tun Razak tabled the 2017 Budget in the Dewan Rakyat at 4.00 p.m. this afternoon.
The prime minister attended a "doa" (prayer session) at the Finance Ministry before leaving for the Parliament House.
The theme for this year's Budget is "Ensuring Unity and Economic Growth, Inclusive Prudent Spending, Well-being of the Rakyat".
The total budget allocation of RM260.8 billion is 3.4 per cent higher than the recalibrated 2016 Budget.
The following are the highlights of the 2017 Budget:
- Budget 2017 allocates RM260.8 billion, an increase of 3.4 per cent from the 2016 Budget Recalibration
- RM214.8 billion for operating expenditure and RM46 billion for development expenditure.
- A total of RM2.9 billion has been allocated to empower the bumiputra community including Sabah and Sarawak from September 2009 to August this year.
- No increase in GST for 2017.
- As of Oct 19, government has collected a total of RM30 billion in GST.
- Under development expenditure, economic sector receives highest share of RM25.9 billion, social sector (RM12.2 billion), security (RM5.3 billion).
- Revenue collection is expected to expand at 3 per cent to RM219.7 billion.
- Government is expected to achieve the fiscal deficit target of 3 per cent of GDP in 2017.
- Malaysia's Purchasing Power Parity (PPP) has increased from US$23,100 in 2012 to US$26,891 in 2015.
- Approved FDI in the first half of 2016 was more than RM28 billion, 32 per cent higher compared to the first half of last year.
- Fully paid study leave with scholarship for civil servants in support group.
- Quarantine leave up to 5 days without record to public servants whose children are ill and required to be quarantined.
- Public servants' housing loans eligibility to be increased to between RM200,000 and RM750,000.
- 5,000 units of MyBeautiful New Home scheme under NBOS for B40 group with allocation of RM200 million; government finance RM20,000, remaining will be paid as instalments by owner.
- 616km of village roads and bridges will be built and upgraded with RM1.2 billion to enhance connectivity of villages, towns and cities.
- RM4.6 billion allocated to all states under the Malaysian Road Records Information System (MARRIS) to maintain state roads.
- 69 flood mitigation plans to be continued nationwide with RM495 million allocation.
- For households in e-Kasih database earning below RM3,000 a month, BR1M will be increased from RM1,050 and RM1,000 to RM1,200.
- For households earning between RM3,000 and RM4,000 a month, BR1M will be increased from RM800 to RM900.
- For single individuals earning below RM2,000 a month, BR1M will be increased from RM400 to RM450.
- BR1M recipients in B40 group will be encouraged to participate as ride-sharing drivers (such as Uber drivers).
- Total BR1M allocation of RM6.8 billion will benefit some seven million people in the country.
- Rate of stamp duty on instrument of transfer of real estate worth more than RM1 million will be increased from 3 per cent to 4 per cent effective Jan 2018.
- The government is targeting 30.5 million tourists this year; a total of 13 million tourists had visited the country as at end-June.
- RM400 million allocation proposed for tourism, including clean air and ecotourism initiatives.
- RM1.2 billion allocated for sports, including RM450 million for hosting 29th SEA Games and 9th Para Asean Games in 2017.
- RM1.3 billion earmarked to increase food production at competitive prices.
- RM2.1 billion allocation for five economic corridors, namely Iskandar Malaysia, NCER, ECER, SDC and SCORE.
- RM275 million proposed to improve people's income opportunities, especially for the B40 group.
- Nearly RM10 billion provided to ease the cost of living, including cooking gas subsidies; toll charges and public transport.
- Lifestyle tax relief up to RM2,500 from 2017 will include purchase of printed newspapers, smartphones and tablets, internet subscriptions and gym membership.
- GLCs will allocate RM3 billion special fund to fund managers under Securities Commission to invest in potential small and mid-cap companies.
- Effective January 2017, fixed line broadband service providers will offer services at a higher speed for the same price.
- MCMC to provide RM1 billion to ensure coverage, quality of broadband nationwide reaches up to 20 megabytes per second.
- Government to introduce the first Digital Free Zone in the world.
- RM75 million to be allocated to promote SME development.
- Implementation of East Coast Rail Line between Klang Valley and the East Coast is estimated to cost RM55 billion.
- 10 more new ETS train sets will be purchased in stages up to 2019, with an overall allocation of RM1.1 billion.
- Government to build about 10,000 houses in urban areas for rental to eligible youths with permanent jobs, including young graduates.
- Four more UTC in Negeri Sembilan, Perlis, Penang and Selangor, and three more RTC in Selangor, Sabah and Sarawak will be built with an allocation of RM100 million.
- 15 per cent discount on the outstanding debt for full settlement of PTPTN loans.
- 10 percent discount for payments of at least 50 per cent of the outstanding PTPTN debts in a single payment, as well as repayment through salary deduction or direct debit.