KUALA LUMPUR: The Government is set to unveil a larger budget for 2016, with an increase in development expenditure and reduction in operational expenditure.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah (pic) said the increase in the budget was aimed at spurring the domestic economy in light of the current global climate.
"There will be a slight increase in the Budget to boost the domestic economy.
"However, we will be adopting a prudent fiscal position to ensure efficient expenditure," he told reporters at a press conference after launching of the Youth Housing Scheme here Thursday.
He said the emphasis will also be given on measures to alleviate status of the B40 household group comprising more 40% of Malaysians with household incomes of below RM2,500.
"The 2016 Budget is crucial at its the first budget under the 11th Malaysia Plan and one towards becoming a high-income nation by 2020.
"It is also very challenging as we have to balance between the current global economic situation and ensuring prosperity," he said.
He said Prime Minister Datuk Seri Najib Tun Razak will chair a budget meeting on Oct 7 to look at the issues highlighted by the respective ministries.
"We have a drafted a budget but will look at all the issues highlighted by the ministries before finalising it," he said.
He added that the Government was targeting to reduce its fiscal deficit from 3.2% to 3% next year.
He also said revenue to fund the budget will be based on current global oil prices but would be flexible to allow for a review.
Earlier, Ahmad Husni launched the Youth Housing Scheme for married couples between 25 and 40 years old with a monthly household income of not exceeding RM10,000.
The scheme offers loans of between RM100,000 and RM500,000 to eligible couples and is limited to 20,000 applicants.