Govt spent RM66.3bil on subsidies last year, says Finance Ministry

KUALA LUMPUR: Some RM66.3bil was spent on subsidies in 2022, says the Finance Ministry.

Minister Datuk Seri Anwar Ibrahim said petrol, diesel, liquefied natural gas (LNG) subsidies as well as cooking oil, electricity, chicken and egg subsidies incurred the biggest expenditures.

“The government also maintained the ceiling price of RON95 petrol as well as diesel prices as a means to protect consumers seeing how the actual market price for these products have already exceeded the market price.

“There are no intentions to further reduce the current ceiling price for these products to prevent the government incurring more costs,” the Prime Minister said in a written parliamentary reply to Datuk Seri Hamzah Zainudin (PN-Larut) on Thursday (June 15).

Hamzah had asked about whether the government has a formula to reduce oil prices in the near future.

Anwar said the government is also exploring steps to provide targeted subsidies in the near future to reduce leakages.

“This would allow the amounts saved on subsidies to be used in optimising expenditures for programmes and projects that add value to the national economy,” he said.

The government is also studying the implementation of targeted diesel subsidies based on suitable and practical models, added Anwar.

“It will be done in stages and subject to the government’s focus on ensuring the people’s cost of living is not affected,” he said.