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Budget 2010

Updated 8.10pm on 23 Oct 2009

 

KUALA LUMPUR, 23 Oct 2009: Prime Minister Datuk Seri Najib Razak today tabled Budget 2010, themed “1Malaysia, Together We Prosper”, which totalled RM191.5 billion.

The budget, Najib’s first as Finance Minister, has a three-pronged strategy to drive the nation towards a high-income economy, and ensure holistic and sustainable development, and the people’s well-being.

The proposed budget allocated RM138.3 billion or 72.2% for operating expenditure and RM53.2 billion or 27.8% for development expenditure.

The expenditure allocation for Budget 2010 is 11.2% less than the 2009 budget allocation of RM215.7 billion, Najib said when tabling Budget 2010 in the Dewan Rakyat this evening.

Najib said that to drive the country towards a high-income economy, the government would encourage increased private investment, provide a business-friendly environment, and implement privatisation initiatives.  

The government will also enhance implementation of public-private partnership initiatives; intensify foreign direct investment; intensify research, development and commercialisation; and fully leverage on niche areas.   

To fully leverage the niche areas, the government will boost the tourism industry; strengthen the information and communication technology industry; and intensify the halal industry.

In order to create a high-income economy, Najib said the government will also advance the agriculture sector; promote the construction industry; strengthen small and medium industries; develop green technology and promote construction of green buildings; and promote the creative industry. 

The prime minster said to ensure holistic and sustainable development, highly skilled human capital would be enhanced while access to quality and affordable education expanded.

Najib said the government will safeguard the welfare of students, enhance skills of the workforce, expand the Permata programme and strengthen public institutions of higher education.           

This strategy will also see the strengthening of the banking and financial system by invigorating the stock market; further developing the Islamic finance system and Ar-Rahnu micro credit programme; and the combating of corruption.

Najib said the government will also stress on the development of the regional corridors, Putrajaya and Cyberjaya.

He said under the operating expenditure, RM42.2 billion was allocated for emoluments and RM20.8 billion for supplies and services.

A total of RM73.9 billion was for fixed charges and grants while RM524 million was provided for purchase of assets, and the remaining RM800 million for other expenditures.

As for development expenditure, a sum of RM25.4 billion is provided for the economic sector to support the needs of infrastructure, industry and agriculture, and rural development.

The prime minister said RM20.3 billion was allocated to the social sector encompassing education and training, health, welfare, housing, and community development.

A total of RM3.7 billion is for the development of the security sector, RM1.8 billion for general administration and RM2 billion for contingencies.

Najib said federal government revenue in 2010 is expected to reduce 8.4% to RM148.4 billion compared with RM162.1 billion in 2009.

However, he said the federal government deficit in 2010 is expected to be in a better position at 5.6% of gross domestic product compared with 7.4% in 2009.

Najib said although Budget 2010 was the last budget for the Ninth Malaysia Plan, it was the essential foundation for the development of a new economic model and a precursor to the 10th Malaysia Plan.

He said since assuming leadership of the government, he has taken steps to stimulate the economy.

Referring to the 1Malaysia concept of “People First, Performance Now”, he said it was based on positive values centred on social justice and acceptance of a multiracial society.

“This means the needs of the people must always take precedence. Therefore, every step requires sacrifice and strong cooperation from every segment of society,” he said.  

The prime minister said in advancing towards a high-income economy, the government would take a new approach based on innovation, creativity and high-valued activities.

“These measures will more than double per capita income of the people in the next 10 years,” he said.

At the end of his speech which took more than two hours, Najib urged everyone to come together with one voice, one hope and one aspiration.

“Our recent success in Bagan Pinang has sparked our zeal to embark on this journey of transformation to lift our beloved nation to greater heights,” he said referring to Barisan Nasional’s big win in the Bagan Pinang by-election recently.         

He ended his speech to thunderous applause from government supporters in the Dewan Rakyat. — Bernama

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2 Responses to “Budget 2010”

  1. Jason says:

    Personal tax reduction from 27% to 26% for personal and business [tax]. Personal tax relief increases from RM8,000 to RM9,000. It sounds pretty good [on paper]; however, only the very small percentage of working-class people with high incomes would be able to enjoy the benefit [of the 1% reduction]. The vast majority of lower-income people will enjoy only the personal tax relief of RM1,000. [...] Making the high-income group pay 1% less [in] tax is equivalent to making the high-income businesspersons richer by 1%.

  2. Nicholas Aw says:

    With the many carrots being dangled in front of the people, Najib hopes to regain the people’s trust and confidence which he badly needs before the next general election. Although the annual budget cannot please every single Malaysian, yet again the pensioners and senior citizens have been left out in the cold.

    Now in their twilight years, the elderly have been discarded while waiting for the last train to Boot Hill. One good example is the tax relief of RM500 for broadband users. Does Najib think that pensioners and senior citizens have no use for such a service? How do pensioners and senior citizens benefit from this RM500 tax exemption? These people do not pay tax, since most of them would probably be unemployed, so how are they going to claim tax relief?

    Perhaps the government should consider paying RM500 to pensioners if the latter can produce that they are broadband subscribers, in the way that the relief paid to motorcar and motorcycle owners was done.


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