From the total allocation of RM332.1 billion, RM233.5 billion is set aside for operating expenditure, RM75.6 billion for development and RM23 billion for the Covid-19 Fund.
Economist Benedict Weerasena of the Bait Al-Amanah think tank said that a “very crucial thrust” of Budget 2022 was its move to catalyse reforms with its plan to introduce the Fiscal Responsibility Act next year which aims to improve governance, accountability and transparency to ensure fiscal sustainability and support macroeconomic stability.
“I think this is very important to ensure all programmes and plans are executed to optimise every ringgit of the rakyat’s money. That is really the way forward in line with international standards,” he said.
Apart from inviting the public to provide suggestions for Budget 2022 and holding 80 engagements with leaders from both sides of the political divide, the finance ministry also published a pre-budget statement for the first time in the nation’s history. A move that some say helped boost public confidence, particularly among investors, in the country’s fiscal management.
Weerasena also noted the government is collaborating with the World Bank to conduct a Public Expenditure Review to ensure the efficiency and effectiveness of public spending without compromising the public delivery system.
“All this shows that the government is more concerned now in engaging with the people and getting their ideas and perspectives on what can be improved,” Weerasena said.
He also highlighted how measures such as the RM25 million set aside for orphans of parents who died from Covid-19 under the Yayasan Keluarga Malaysia also contributed to Budget 2022’s inclusiveness.
“The other examples of inclusivity are the RM70 million allocation for mental health programmes and the free monthly personal hygiene kits for around 130,000 teenage girls from B40 households.”
With an overall focus on the rakyat’s welfare, rebuilding business resilience and driving socio-economic growth, Weerasena said Budget 2022 sought to ensure the rakyat’s well-being with schemes such as the RM8.2 billion Bantuan Keluarga Malaysia (BKM) which is set to benefit 9.6 million recipients.
Households earning less than RM2,500 per month and with three or more children will receive RM2,000 cash aid under the BKM scheme.
In addition, single parents who earn less than RM5,000 a month are also set to receive RM500 while senior citizens will receive RM300.
“I think one thing good about this scheme (BKM) is that it takes into account the size of each household, so those with more dependents will get a higher amount, instead of a one-size-fits-all approach,” Weerasena said.
With the Covid-19 pandemic affecting incomes and financial security across the country, Goh Lim Thye, a senior economics lecturer at Universiti Malaya (UM) noted how Budget 2022 aims to create 600,000 job opportunities through its RM4.8 billion Jamin Kerja Keluarga Malaysia (JaminKerja) initiative.
This includes incentives for employers who hire job seekers, single mothers, housewives, women who have not been working for more than 365 days, Orang Asli, the disabled and ex-convicts.
Highlighting how economic growth contracted by 5.6% last year compared with a 4.3% expansion in 2019, Goh said that last year’s “very high inflation” rate of 4.8% was also a cause for concern for most Malaysians.
“So, from that particular point of view, the new job creations should be able to comfort some Malaysians who have lost their jobs – which from reported figures, is over 700,000,” he said.
“Budget 2022 also targets positive growth for Malaysians next year. So, we hope all the measures, allocations, stimulus packages and incentives available will be able to address the issues we faced in 2020 and 2021.”
