The finance ministry said this would involve an estimated RM1.6 billion with the payout to be made a week before Hari Raya Aidiladha.

“The Pakatan Harapan government has shown its commitment to fulfilling the pledges in its manifesto,” Finance Minister Lim Guan Eng said in a statement today.

He added that despite the axing of the goods and services tax (GST), the federal government had not gone bankrupt as projected by the former Barisan Nasional administration.

“In fact, we are still able to provide the BSH even without GST collection,” he said.

“In addition, RM3 billion has been allocated for petrol subsidy until the end of the year to stabilise the prices of RON95 and diesel at RM2.20 and RM2.18 per litre.”

This was despite global prices rising by 42% to US$74 (RM302) per barrel compared to US$52 per barrel previously, he added.

Lim said the government hoped the BSH aid would help people buy daily necessities and make preparations for Hari Raya Aidiladha.

The BSH payments will be credited directly to recipients’ bank accounts. For those without an account, a letter of approval will be mailed directly to them, and they can collect the cash from any Bank Simpanan Nasional branch.