‘Budget 2016 adjustment for country’s good’

January 30, 2016

KUCHING: The readjustment of the Budget 2016 is for Malaysia to be able to move on and for the rakyat to be less burdened.

This was according to Assistant Minister for Housing and Youth Development (Urban) Datuk Haji Abdul Karim Rahman Hamzah yesterday.

Commenting on the readjustment to the Budget 2016 which was announced by Prime Minister Datuk Seri Mohd Najib Tun Razak who is also Finance Minister on Thursday, Karim hoped that the measures were just temporary and the world economy as well as Malaysia’s would improve slowly.

“As much as we wish that a readjustment of the 2016 Budget would not happen, we have to be realistic,” he pointed out when asked to give his comment on the readjustment of the Budget 2016. 

Karim said when the Budget was presented in parliament in October last year, it was based on the country’s reserve and economic projection last year.

“The world economy has taken a down turn especially with the drastic drop in oil prices and Malaysia, just like all other countries in the world, is not spared,” he pointed out. 

“The readjustment to the Budget 2016 is for Malaysia to be able to move on and for the rakyat to be less burdened on the way. We hoped that the measures were just temporary and the world economy as well as Malaysia’s would improve slowly,” he said. 

The adjustment to the 2016 Budget are expected to save the government RM9 billion in operating development expenditure while boosting private consumption.

Among the adjustments made to the Budget 2016 were Employee’s contribution cut by 3 per cent from March this year to December 2017. This is expected to increase private consumption expenditure by RM8 billion a year; RM2,000 tax relief to those earning RM8,000 or less a month for 2015 assessment. 

This translates into individual tax savings of up to RM475 for two million taxpayers.

The other adjustments are MyFarm outlets to sell produce at below market prices, more fair price shops to be set up, 20kg of rice a month for registered hardcore poor, until December this year; new houses priced up to RM300,000 to be served for first time house buyers, special loan package to benefit over 10,000 house buyers; and development expenditure for more rakyat-centric programmes and those with high multiplier effect. 

This will reduce cash flow commitments by up to RM5billion.