The 2017 Budget seems bright and shiny, but scratching the surface reveals serious grounds for concern.
The Prime Minister announced the 2017 Budget on October 17, 2016 in parliament. The Budget Speech can be seen as a strategic plan for the upcoming year and always marks an important milestone in Malaysian politics.
Next year's budget deficit is expected to be three per cent of the GDP vs. 3.1% 2016. Nevertheless, a balanced budget is unlikely to be achievable in the foreseeable future due to the large expenditure on the civil service. Out of an operating expenditure of RM214.8bil, RM77.4bil is for Emoluments, and RM32bil is for Supplies and Services. These collectively are 51% of the total operating budget, or 42% of the total budget.
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