KUALA LUMPUR – The Federal Government has allocated RM297 billion or 18.4% from the Gross Domestic Product (GDP) for the Budget 2020.
From that amount, RM241 billion of 81.1% were allocated for the operational expenditure while RM56 billion would be used for development expenditure.
According to a Federal Government Fiscal and Income Estimation Study, from this amount, 37.9% would be allocated for programmes or projects under the social sector, followed by economic (16.2%), security (11.3%) and general administration (7.5%). The remaining 27.1% would be allocated for the expenditure on tr
The three ministries which received the highest allocation of 44.6% from the total budget are the Ministry of Education RM64.1 billion, Ministry of Finance RM37.8 billion and Ministry of Health RM30.6 billion.
The government will also provide further injection of 0.2% from the GDP through development expenditure to implement high impact and strategic projects such as the building of railway and roadworks, upgrading schools, clinic and water treatment plants and also the broadband infrastructure in suburban areas.
The operational expenditure is estimated around RM241 billion or 14.9% from the GDP in 2020, a 7% increment from the RM225.3 billion this year, without factoring the allocation for the allocation on once-off tax refunds amounting to RM37 billion.
A big portion of the operational cost would be allocated for emolument (5.1%) from GDP, followed by services and supply (2.4%), debt services payment (2.2%), retirement (1.7%) and social aids and subsidies (1.5%). -MalaysiaGazette