PETALING JAYA: The allocation for Budget 2021 is RM322.5bil, the largest on record for the country.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said RM236.5bil had been allocated for expenditure, RM69bil for development, and RM17bil to deal with the Covid-19 pandemic.
“Another RM2bil has been allocated for contingency savings, ” said the Finance Minister during the tabling of Budget 2021 in parliament on Friday (Nov 6).
A total of RM297bil was allocated for Budget 2020.
Zafrul said that government revenue had been affected because of the Covid-19 pandemic, with this year’s revenue revised to RM227.3bil, a reduction of almost RM18bil from the original projection of RM244.5bil.
He said despite the lower revenue scenario, the government would not compromise in protecting lives and livelihoods in battling Covid-19.
“Thus, total allocation for 2020 is estimated at RM314.7bil in terms of expenditure, an increase of RM17.7bil compared to the original projection.
“The rise in expenditure is intended to finance the stimulus package and economic recovery.
"Therefore, the fiscal deficit for 2020 is estimated to increase to 6% of GDP compared to the original target of 3.2%,” he said.
Zafrul said the effects of the Covid-19 epidemic would continue to be felt next year, with the 2021 revenue expected to be RM236.9bil.
“Nevertheless, the government has decided that the 2021 Budget is an expansionary budget,” he said.