PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has announced total allocations of RM421bil for Budget 2025, which aims to ensure social justice and drive economic growth.
Clad in a light grey baju melayu and a gold sampin, Anwar arrived at 4pm in Parliament to table Budget 2025 in the afternoon after Friday prayers on Oct 18.
Budget 2025 is Anwar’s third budget since helming the top post in November 2021.
The amount is nearly RM40bil more than Budget 2024 tabled in Oct last year, which was RM393.8bil, with 42.3% going to the Finance, Education and Health Ministries.
“The economic performance has surpassed expectations in terms of growth, investment and the ringgit’s value. This reflects investors confidence and preliminary success from reforms under the Economy Madani framework.
“Besides that gross domestic product (GDP) this year is expected to strengthen between 4.8% to 5.3%, compared to 4%-5% previously.
“In fact, the World Bank also raised its forecast on Malaysia’s growth to 4.9% compared to 4.3% in April,” said Anwar.
Anwar said the unity government inherited massive debt from the previous administration amounting to RM1.2tril as of last year.
“If liabilities were included, our debts will surpass RM1.5tril or 80% of the GDP.
“For every ringgit collected from taxes, 16sen is spent on paying debt interest, and this does not include the principal debt,” said Anwar.
Anwar said since taking over Putrajaya in 2022, the government has taken various steps to reduce deficit to 5% last year from 5.5% in 2022.
According to Anwar, the government aims to reduce the deficit to 4.3% this year and 3.8% next year.
“It is even more meaningful when deficits and new loans can be reduced in stages each year, allowing us to achieve the medium-term target of the Public Finance and Fiscal Responsibility Act, which stated clear indicators on debt management and fiscal deficit,” added Anwar.
Budget 2025, which focuses on driving reforms, reinvigorating the economy and prospering the rakyat, was tabled by Anwar on Oct 18 and it will see several weeks of debates in the current Parliament session that is expected to end in December this year.
