Budget 2023; Highlights from updates on economic & fiscal outlook and revenue estimates 2023

KUALA LUMPUR: Following are the highlights from Updates on Economic & Fiscal Outlook and Revenue Estimates for 2023:

• Budget 2023 allocation revised upward to RM386.14 billion from RM372.3 billion budget in October 2022
• The economy is expected to grow moderately at 4.5 per cent compared with an earlier projection of between 4.0 and 5.0 per cent in 2023 versus 8.7 per cent in 2022
• The services sector is expected to be the main contributor to 2023 GDP growth, which is anticipated to expand by 5.3 per cent in 2023
• The construction sector is to grow by 6.1 per cent in 2023, manufacturing by 3.9 per cent, agriculture by 1.1 per cent and mining by 1.2 per cent
• Total trade is expected to expand further to RM2.887 trillion in 2023, with an estimated surplus of RM264.33 billion
• Federal government revenue is expected to decrease by 1.0 per cent in 2023 to RM291.5 billion from a growth of 25.9 per cent (RM294.35 billion) in 2022
• Borrowings for 2023 are expected to be at 12.2 per cent of GDP, lower than the initial projection of 14 per cent (2022:12.9 per cent)
• The fiscal deficit is expected to reduce to 5.0 per cent of GDP in 2023
• The inflation rate remains manageable and is anticipated to range between 2.8 per cent and 3.8 per cent in 2023
• Crude oil price is expected to average at US$80 per barrel - Bernama