The 2024 Madani Malaysia Budget presented by the Prime Minister and Minister of Finance, YAB Dato' Seri Anwar Ibrahim last Friday has invited various reactions in the community.
The 2024 budget focuses on the low and middle income groups through controlling the cost of living and increasing income.
PM Anwar presented the 2024 Budget in the Dewan Rakyat with the theme "Economic Reform, Empowering the People".
The essence of the budget presentation was observed by economic analysts covering various aspects including economic growth, tax enforcement, new economic restructuring plan, people's assistance, higher education fees and others.
The following is part of the essence of the 2024 budget outlined.
The Unity Government allocated a total of RM393.8 billion for this budget which comes from income tax, loans and use of government assets, non-tax revenues, direct and indirect taxes.
The government expects GDP growth to increase to 5% and the 2024 fiscal deficit is projected to decrease in 2023 and 2022.
For tax, the government will enforce the implementation of Capital Gains Tax for the disposal of unlisted shares by local companies based on net profit at a rate of 10% from 1 March 2024.
The SST tax is proposed to be increased to 8% from the previous 6%, while the High Goods Tax will be introduced at a rate of 5-10%.
In the business sector, RM900 million in loan funds have been allocated to encourage small and medium-sized businesses (SMEs) to increase productivity through automation and digitalisation.
Civil servants grade 56 and below will receive an Initial Incentive Payment amounting to RM2,000 and paid at the end of February 2024.
For government retirees including pensioned and non-pensioned veterans are eligible to receive an Initial Incentive Payment amounting to RM1,000 and will also be paid at the end of February 2024.
For people's assistance, the rahmah 2024 cash contribution (STR) is allocated to RM10 billion, which is increased from RM8 billion which will benefit about 9 million beneficiaries.
The first payment is increased to Rm500 and will be distributed before Ramadan.
Allocated as much as RM55 million in electricity subsidies for the extreme poor at RM40 per month.
Students' higher education fees are limited to no more than Rm1,500 and there are no subject registration restrictions if students cannot afford to pay the fees.
PTPTN is also given a repayment discount for those who are in debt to settle the loan balance.
