Govt to continue to consolidate fiscal position
THE government will continue to consolidate its fiscal position next year, while promoting economic growth and implementing rakyatcentric programmes and projects.
The Economic Report 2016/17 said public sector reforms would be accelerated next year to further strengthen fiscal management and boost public service delivery.
With the measures in place, fiscal deficit is projected at RM40.3 billion of gross domestic product next year compared with RM38.7 billion this year.
Federal government revenue collection is expected to grow 3.4 per cent to RM219.7 billion next year due to higher collection of tax revenue, largely from corporate income tax.
The non-oil related revenue continue to be major contributor to total revenue with a share of 86.2 per cent, attributed to higher Goods and Services Tax collection of RM40 billion.
The report said the federal government expenditure is expected to increase 3.4 per cent to RM260.8 billion, with 82.4 per cent allocated for operating expenditure (OE) and the remaining for development expenditure (DE).
A total of RM46 billion will be allocated for DE next year, with a bulk of it will be provided to the economic sector (56.2 per cent), followed by the social sector (26.5 per cent), security (11.5 per cent), and general administration (5.8 per cent) sectors.
The allocation for the economic sector will be utilised for upgrading infrastructure such as improving roads and public transport system to enhance access and connectivity.
In addition, the funds will also be allocated to enhance telecommunication and energy infrastructure, particularly in rural areas.
A sum of RM12.2 billion will be allocated to the social sector to provide better quality of life for the rakyat.
Of this, RM5.9 billion is set aside for the education and training sub-sector which aims to build a progressive and inclusive society. Another RM1.5 billion is allocated to improve health facilities and services for the rakyat while RM900 million is allocated for the housing sub-sector, it said.
The security sector will be provided RM5.3 billion to enhance the capability and capacity of the armed forces and police through the construction and upgrading of facilities and equipment.
For the general administration sector, RM2.7 billion will be allocated for upgrading of government facilities and information and communications technology systems nationwide.