Deputy finance minister: Nearly RM80 bln expected to be spent for subsidies this year

Mohd Shahar Abdullah – Bernama file photo

BINTULU (Sept 6): The federal government is expected to allocate almost RM80 billion for subsidies this year – the highest in the country’s history, said Deputy Finance Minister I Datuk Shahar Abdullah.

He said the subsidies covered petrol, diesel and liquefied petroleum gas (RM37.3 billion), cooking oil (RM4 billion), various forms of assistance including Bantuan Keluarga Malaysia or BKM (RM11.7 billion), and other subsidies (RM14.6 billion).

“If there are no subsidies, the country’s inflation rate could reach 11.4 per cent. This move can avoid hyperinflation, which is when the inflation rate remains at the level which is very high from one month to month until it can erode the value of a country’s currency,” he said at a meet-the-people session in Uma Ukit, Sungai Asap Belaga yesterday.

According to him, the country’s inflation rate was at 2.8 per cent in May this year, 3.4 per cent in June, and 4.4 per cent in July.

However, Shahar said the country’s inflationary pressure was moderate compared to other countries such as the United States (9.1 per cent), United Kingdom (9.4 per cent), Thailand (7.7 per cent) and Singapore (6.7 per cent) in June 2022 – mainly the result of price control measures on selected goods and services.

He said this included the provision of subsidies on fuel prices and selected food as well as electricity rebates for domestic users.

“In line with the momentum of post-Covid-19 economic recovery, Budget 2023 will continue to focus on the people’s welfare agenda, especially in terms of income and social protection,” he added.

In Budget 2022, the government had allocated over RM31 billion for subsidies, aid and incentives to minimise the impact of the rising cost of living by means of control of the prices of goods and services.

Budget 2023, themed ‘Strengthening Recovery and Facilitating Reforms towards Sustainability of Economic Resilience and Wellbeing of Keluarga Malaysia’, will be tabled in the Dewan Rakyat on Oct 7.

from Borneo Post Online https://bit.ly/3eoNji6
via IFTTT