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KUALA LUMPUR: Finance Minister Tengku Zafrul Aziz today presents the Budget for 2021, the first for the Perikatan Nasional government since Putrajaya took office in March this year.
According to Bernama and Reuters, a total of RM322.5 billion has been allocated for 2021, some RM7.8 billion more than the 2020 budget worth RM314.7 billion.
Around RM 236.5 billion has been allocated for operational expenses, RM 69 billion for development and RM 17 billion for the Covid-19 fund.
Operational:
Emoluments – RM84.5 billion
Debt repayment: RM39 billion
Services and supply – RM32.8 billion
Pensions – RM27.7 billion
State governments – RM7.7 billion
Subsidies – RM18.7 billion
Others – RM25.8 billion
Development:
Economy – RM39 billion
Social – RM18.3 billion
Security – RM7.7 billion
General Administration – RM3.8 Billion
Covid-19 Fund – RM17 Billion
The three main objectives of the 2021 Budget are:
- people’s welfare
- business continuity
- economic resilience
national defense
- RM16 billion allocated to the defense ministry
- RM17 billion for the home office
- 2.3 billion ringgit to maintain military assets
- RM27 million to improve the country’s cyber security
- 500 million ringgit for the construction of 1,000 houses for military families
- 153 million RM for Rela
Transport
- 300 million ringgit to extend My30 unlimited travel pass to Penang and Kuantan, Pahang
- The government will introduce unlimited monthly travel passes at RM5 for students and the disabled. This includes train services in the Klang Valley, as well as other parts of the country.
- Tax exemption for the purchase of new buses
accommodation
- Stamp duty exemption for first homes up to RM500,000
- 1.2 billion ringgit for the provision of housing for low-income home buyers
- RM 500 million for 14,000 PPR units
- RM315 million for 3,000 Rumah Mesra Rakyat
- RM125 million to repair dilapidated low-cost houses
- 310 million ringgit for public servants’ homes
- The government will work with selected financial institutions for a rent-to-own scheme involving 5,000 Pr1ma households
RM50.4 billion for education
- RM50.4 billion for the ministry of education representing 15.6% of the budget
- 420 million ringgit for the complementary food program for students
- 725 million ringgit for ruined schools
- RM 45 million for student wellness
- 14.4 billion ringgit for the ministry of higher education
- Ringgit 50 million to improve the facilities and infrastructure of public universities
- RM50 million to upgrade Internet connectivity in universities from 500 Mbps to 10 Gbps
- Ringgit 6 billion for technical and vocational education and training (TVET)
- 300 million ringgit for loans for 24,000 TVET students
- 29 million ringgit for TVET programs for students at tahfiz and pondok schools
Digital connectivity
- RM1.5 billion to guarantee internet connectivity for the B40 group in the form of RM180 credit per person. This will benefit eight million people
- Telecom companies to provide RM 1.5 billion worth of data
- 500 million ringgit for the Jendela initiative, to boost Internet connectivity in schools
- RM 7.4 billion for MCMC to increase broadband service in 2021 and 2022
- GLCs will contribute RM150 million to the Cerdik fund for the purchase of laptops for 150,000 students in 500 schools
Youth and sport
- RM 1,000 per month for three months for employers hiring recent graduates for apprenticeship programs
- One-time e-wallet credit of RM 150 for people ages 18-20. This will benefit 1.5 million young people
- Ringgit 19 million for national health programs to promote healthier lifestyles
- 103 million ringgit to build, upgrade and maintain all sports facilities across the country
- The tax exemption for sports expenses increased from RM2,500 to RM3,000
Rural development
2.7 billion ringgit for rural infrastructure projects. This includes:
- 1.3 billion ringgit for roads
- RM632 million for water supply
- RM 250 million for electricity supply
- 355 million ringgit to build new houses and repair dilapidated houses
- RM121 million to build 27,000 light poles
Tax exemption and essential goods
- 1% decrease in income tax for those earning between RM50,000 and RM70,000 per year
- 20 million ringgit to establish community centers for children to be cared for when the school session ends
- 170 million ringgit for early childhood education under KEMAS
- Tax exemption for companies that hire older people
- Tax exemption for disabled couples increased from RM3,500 to RM5,000
- 158 million ringgit for social and development programs for the Orang Asli community, including the establishment of 14 new nurseries
- Expansion of tax exemptions for companies that hire ex-prisoners and drug addicts
- 50 million ringgit for the repair and maintenance of places of worship under local councils
- RM100 million to enhance the socio-economic development of the Indian community
- RM177 million for the Chinese community for educational facilities and new villages
- RM30 million to establish kindergartens in government buildings, especially hospitals
- 21 million ringgit for the creation of social support centers
- 95 million ringgit allocated to financing microcredits for women entrepreneurs
- One-time payment of RM500 to teachers and religious leaders (takmir), expected to benefit nearly 70,000 people
- 1.4 billion ringgit allocated to the prime minister’s department of Islamic affairs
- RM4.6 billion allocated to empower Bumiputera entrepreneurs
- This includes 6.5 billion ringgit for universities for Bumiputeras.
- RM 1 billion allocated for retraining and skills improvement programs
- The government allocates RM2 billion to continue the Career Generator program under Socso
- The government will allocate 1.5 billion to extend wage subsidy programs for another three months, particularly in the tourism sector
- Ringgit 3.7 billion for the Job Generation Guarantee Scheme (JanaKerja) to create jobs and upgrade skills
- 400 million ringgit to abolish the interest debts of the Felda settlers
- The allocation for fishermen will increase to 300 ringgit per month
- 200 million ringgit allocated to the distribution of commodities
The EPF contribution for employees decreased from 11% to 9% for 12 months starting in January 2021
- 24 billion ringgit for Socso’s work-related accident plan. Delivery passengers will also be included in this scheme.
- RM3,000 of tax breaks for contributors to private retirement plans
- EPF to allow taxpayers to withdraw from Account 2 to purchase insurance
- The government will allow taxpayers to withdraw RM500 per month from their EPF 1 account for 12 months starting January 2021
- RM 150 million allocated to extend Socso’s job search allowance for three months
Covid-19 and public health
The ceiling of the Covid-19 fund will be raised to 65 billion ringgit
RM1 billion to stop Covid-19 in the following ways:
- 475 million ringgit for equipment and supplies for the ministry of health
- RM 318 million for top-of-the-line personal protective equipment and hand sanitizers
- RM150 million for the National Disaster Management Agency
- Ringgit 50 million for the purchase of equipment, laboratory supplies and medicines in university hospitals
- One-time payments of RM 500 to frontliners
- 24 million ringgit for mental health programs
- Tax exemption of up to RM1,000 for medical treatment expenses involving vaccination
- Tax exemption of up to RM8,000 for the treatment of serious illnesses
- Tax exemption of up to RM1,000 for medical exams
- Tax exemption of up to RM8,000 for medical treatment, needs and parental care
- The MySalam and Perlindungan Tenang coupon program will be expanded for the B40.
- RM90 million for the pneumococcal vaccination program for children.
- Aid for OKU increased to RM300 million
- Aid to the elderly increased to 500 million ringgit
- Allowance for OKU workers increased to RM450 million
- In total, 2.2 billion ringgit allocated to monthly social benefits, which will benefit more than 400,000 people.
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