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On Friday, OBSERVERS lauded the government for its 2025 Budget announcement, hailing it as a "for all" budget and adding that the Madani administration was sincere in improving people's well-being.
They said the highest-ever budget allocation did not only focus on aiding the people with cash aid but also on education, income and tax returns that would strengthen the country's economy.
In his speech at the Dewan Rakyat, Prime Minister Datuk Seri Anwar Ibrahim said the government's focus for next year's budget is to drive changes through fiscal responsibility and governance.
The changes are rejuvenating the economy by raising the productivity and national income ceiling and enhancing the well-being of the people by elevating living standards and strengthening social security.
The Tambun MP announced a budget of RM 421 billion - an increase from the RM393.8 billion in Budget 2024, making the 2025 budget the largest.
Operational expenditure accounts for RM335 billion, or 79.6%, while RM86 billion is allocated for development expenditure.
Anwar, who is also the Finance Minister, said in August 2024, the inflation rate was only 1.9%, among the lowest in the region, while unemployment also went down to 3.2%, which is the lowest since January 2020.
"Budget 2025 is not just for the government but also for the rakyat and will be guided by the principle of good governance.
"Past transgressions will not repeat itself," he said.
Economist Dr Barjoyai Bardai dismissed suggestions that the budget was an election budget saying that Putrajaya had come up with some great ideas to strengthen the country's economy.
He added that the budget was also not a "cover-up" budget to hide the government's failure to address certain issues.
"It looked very sincere, there was nothing to show you that they are trying to give out sweets to the people. They were trying to uplift the livelihood of the masses.
"They were also very good ideas from the staff from the Finance Ministry such as the voluntary pension scheme, the dividend tax as well as the increase in the minimum wage," he said.
However, Barjoyai urged the government to ensure that micro business owners would not be left in limbo while applying for government schemes.
He noted that there have been many cases where small business owners were left clueless on how to obtain government funds.
"Many of them gave up after not being able to secure the funds due to bureaucracy and unnecessary qualifications. They need to come up with a proper mechanism so the funds can reach the target audience. Those who need it," he said.
Agreeing with Barjoyai was University Malaya's Prof Dr Awang Azman Awang Pawi who said that the budget was for everyone including states governed by the opposition.
He added while some may say that the budget is a step for the government to win voters in opposition-led states, it showed that Putrajaya was trying to create a balance between winning over the voters and improving the livelihood of the people as a whole.
"It covered all sectors including strategic projects such as the North-South Highway project, the Johor-Singapore RTS project, tourism and flood mitigation programme.
"They also focused on basic infrastructure such as the automotive hub, expansion of airports, sewage and other industries in several states.
"Yes, it can be said that they are trying to win over voters in the opposition states and to strengthen the existing support in states of their own but we can see a balance.
"The government is committed to local development, they focused on economic reform which is going to be the catalyst for our country's economy."
"The budget was not for winning an election per se. It is an effort to get close to the people and at the same time ensure that the country can grow better," he said.
Reforms will be carried out on the country's subsidy systems for education, healthcare and fuel, with Putrajaya aiming to ensure these benefits will be effectively given to those who need them the most, particularly the low and middle-income groups.
Anwar in tabling the 2025 National Budget, noted the importance of redirecting subsidies that currently benefit wealthier individuals and foreign nationals, including tourists.
Anwar highlighted that 40% of Malaysia's fuel subsidies for RON95 petrol, worth RM8 billion, are being consumed by the wealthiest 15% of Malaysians and foreign nationals.
The government plans to restructure this to prevent wastage and ensure the funds are used for more critical public services, he said.
Brave move
Meanwhile, Hisomuddin Bakar of Ilham Centre said that the 2025 Budget was a balance of trying to win the heart of the people, especially the majority as well as trying to keep the economy going.
He said the budget is an improved one compared to the budget tabled by former prime minister Najib Razak when he introduced the Bantuan Rakyat 1Malaysia (Brim) several years ago.
"It was a brave move to rationalise the RON95 after the move was suspended for some time. The government was serious in ensuring that those in need will receive the help they deserve. This is to keep a balance between the rich and the poor.
"The budget can be said as trying to get the support of the majority of the people from a political point of view.
"It is better than the Brim actually because it has so many elements, not just giving out cash to the people. The basic wage policy is one example. It is a long term plan and it is progressive. Of course we have yet to see the impact but it will show from time to time," he explained. - October 21, 2024
