SOMETHING FOR EVERYONE THE prime minister is set to present a painless but responsible budget that will offer something for everyone. The lower-income group will benefit the most, but the middle class will indirectly enjoy other new initiatives. There w

PRAGMATIC: Budget will keep economy firmly on growth path

THERE will be something for almost everyone. The 2017 Budget, to be unveiled today, will touch every segment of society, but yet it will not be too generous at the expense of fiscal prudence.

The focus will be on the lowerincome earners, or the so-called Bottom 40 (B40) group, to help lift their income, government officials said.

Affordable housing programme will be accelerated, with the government and government-linked companies (GLCs) building more such homes and ensuring the people have the means to buy them.

There will be more fiscal incentives for the people and the businesses, especially small- and-medium-scale companies.

The middle-class or the M40 – defined as those earning between RM3,860 and RM8,320 per month — will benefit indirectly from better amenities and the increase in supply of affordable homes.

There will also be additional incentives for the country’s 1.6 million civil servants. Education, healthcare and infrastructure will continue to be given priority.

Skills training will be stepped up. There will be special training programmes for fresh graduates to improve their chances of getting a job.

Prime Minister and Finance Minister Datuk Seri Najib Razak will present the budget at 4pm at the Dewan Rakyat. It will be televised live.

Officials said this budget would not just be painless, but one that was pragmatic and fiscally responsible, keeping the economy firmly on a growth path despite the global strong headwinds.

The growth drivers will be the relatively strong domestic demand. Foreign direct investments are still good.

For next year, inflation should remain at two per cent to three per cent and the fiscal deficit and the Federal Government’s debt-to-gross domestic product ratio should be within official targets.

Next year’s budget is assuming crude oil prices of US$45 (RM187) per barrel, quite a conservative level but higher than the US$30 to US$35 in the recalibrated 2016 Budget.

The Goods and Services Tax will continue to account for major indirect taxes for the government, as petroleum revenue remains low.

One major thrust from the budget is the push for digital economy. The budget will outline measures to spur the growth of the digital economy that enables companies and people to do more business online and for the people to earn better income.

E-commerce, ride-sharing applications, like Uber, or other digital innovations will be encouraged. The government may also ask telcos to offer cheaper but faster broadband or mobile connections to support the digital economy.

The government realises that continuous handouts may not be sustainable. A better option is to provide new opportunities for people to earn higher income. For example, selling tudung online from homes is one way to earn extra money.

But, it will not neglect its responsibility of providing social safety net. The poor and the deserving will continue to be assisted. The 1Malaysia People’s Aid will continue and the quantum will be raised.

Will this be an election budget? Government officials said some people might see it that way, but for the government, it was about delivering its promises to the people through socio-economic projects.

The key thing is that the budget must be inclusive, fair, balanced and allow the people to share the nation’s wealth.

On revenue-raising measures, the government may announce a hike in university fees for foreign students.

It will also collect more levies following the exercise to regularise undocumented foreign workers.