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Budget 2023 eases the financial burden of the people

By: Rosli Mansor

The initiative announced in the 2023 Budget is seen to be capable of easing the financial burden of the people, especially the low-income group in the face of global uncertainty, according to analysts.

AmInvestment Bank in its research note, the budget presented last Friday emphasized, among other things, providing more cash to the low-income segment in addition to education allowances.

The Unity Government also said it will reduce the individual income tax rate by two percentage points for annual income between RM35,000 to RM100,000 while increasing it by 0.5 per cent to two per cent for the range of more than RM100,000 to RM1 million.

“The reduction of individual income tax by two percentage points to 15 per cent for annual income below RM100,000 will provide a short-term increase in consumption to the country.

“In general, the tax reduction will benefit the M40,” he said.

AmInvestment Bank said, with the expectation of slower global economic growth, the 2023 budget expenditure has been raised to RM388 billion, a four per cent increase compared to the previously announced RM372.3 billion and a huge increase of 20.5 per cent compared to RM332 billion in 2022.

It said that although development expenditure was higher at RM97 billion, it was cautious as it was usually for basic infrastructure projects, which would benefit smaller contractors, most of whom are not publicly listed companies.

Sharing of news sources: Berita Harian

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