KUALA LUMPUR: Following are the highlights of the 2015 Budget tabled by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister, at the Dewan Rakyat today.
The budget proposals were crafted based on the theme ‘People Economy’.
To this end, the 2015 Budget outlined seven main strategies, namely strengthening economic growth, enhancing fiscal governance, developing human capital and entrepreneurship, advancing Bumiputera agenda, upholding the role of women, developing national youth transformation programme, and prioritising well-being the people.
* 2015 Budget allocates RM273.9 billion, up RM9.8 billion compared to 2014 initial allocation.
* RM223.4 billion is for operating expenditure, RM50.5 billion for development expenditure.
* RM65.6 billion is for emoluments, RM38.1 billion for supplies and services.
* RM29.3 billion allocated to the economic sector.
* RM12.6 billion allocated to the social sector for education, training, health, housing and well-being of society.
* RM4.9 billion earmarked for the security sector, RM1.7 billion for general administration and RM2 billion for contingencies.
* In 2015, Federal Government revenue collection estimated at RM235.2 billion, a RM10.2 billion increase from 2014.
* For 2015, economic growth expected to remain strong between 5 per cent and 6 per cent, fiscal deficit projected to further decline to 3 per cent of GDP.
* In 2015, government revenue estimated at RM23.2 billion with implementation of Goods and Services Tax (GST).
* Government to exempt goods from GST amounting to RM3.8 billion.
* With GST implementation, Sales and Services Tax (SST) abolished, resulting in revenue foregone of RM13.8 billion.
* RM4.9 billion to be channelled back to the people through assistance programmes, such as the increase in Bantuan Rakyat 1Malaysia (BR1M).
* RM690 million net revenue collection from GST
* Government to continue providing conducive and comprehensive ecosystem to accelerate domestic and foreign investment.
* In 2015, several infrastructure projects will be implemented — 59-km Sungai Besi-Ulu Klang Expressway (SUKE) with total construction cost of RM5.3 billion; 276-km West Coast Expressway from Taiping to Banting (RM5 billion); 47-km Damansara-Shah Alam Highway (DASH)(RM4.2 billion); 36-km Eastern Klang Valley Expressway (EKVE)(RM1.6 billion); 56-km Second MRT Line from Selayang to Putrajaya (estimated RM23 billion); LRT 3 Project linking Bandar Utama to Shah Alam and Klang (estimated RM9 billion); and RM150 million upgrading of East Coast railway line.
* Pengerang Integrated Petroleum Complex project with total investment of RM69 billion expected to create over 10,000 jobs.
* In an effort to develop electric vehicle manufacturing industry, RM70 million Sustainable Mobility Fund to be established under SME Bank, 50 electric buses will be introduced initially.
* RM100 million Digital Content Industry Fund to be set up under Communications and Multimedia Commission to further promote creative industries like animation, filming, designing and cultural heritage.
* Retail sale of RON95 petrol, diesel and LPG given relief from payment of GST, meaning consumers and targeted groups will not have to pay GST on the purchase of these items.
* Electricity consumption not subject to GST increased from the first 200 units to 300 units, move to benefit 70 per cent of households.
* Individual income tax rates will be reduced by 1 to 3 percentage points. With this measure, 300,000 individual taxpayers will no longer pay income tax.
* Taxpayers with family and income of RM4,000 per month will not have tax liability.
* For year of assessment 2016, corporate income tax reduced by 1 percentage point from 25 per cent to 24 per cent, and income tax rate for SMEs reduced by 1 percentage point from 20 per cent to 19 per cent.
* RM40.5 billion allocated for various subsidies in 2014, RM588 million in 1994.
* New mechanism for providing petroleum subsidy to be announced soon.
* RM56 billion allocated to Education Ministry for various teaching and learning programmes, emphasis on strengthening schools requiring guidance and special assistance.
* 12 new schools comprising seven primary, three secondary and two boarding schools to be built nationwide.
* RM1.2 billion set aside for vocational and technical transformation programme and upgrading of colleges.
* RM800 million allocated for development and maintenance of educational facilities.
* Electricity and water bills of all National-type schools under Education Ministry to be paid in full up to RM5,000 maximum limit compared to RM2,000 previously.
* RM3 billion set aside for sponsoring education – RM1.9 billion to Public Services Department, Education Ministry (RM759 million) and Health Ministry (RM258 million).
* National Higher Education Fund Corporation (PTPTN) loans worth RM47.8 billion taken by 2.1 million borrowers to date; as at Aug 31, 2014, only RM5.36 billion or 46 per cent of RM11.76 billion collected.
* 174,000 PTPTN borrowers have not made any payments since 2010, government to take new measures to recover outstanding loans.
* 10 per cent rebate proposed for PTPTN borrowers who continuously make repayments for 12 months until 31 Dec, 2015, additional 20 per cent discount offered to those making lump sum repayments from today until March 31, 2015.
* Employment Act 1955 and related labour acts to be reviewed to safeguard the welfare of workers.
* Government to introduce Employment Insurance System to assist retrenched workers.
* RM600 million allocation to increase Bumiputera ownership in private companies and government-linked companies (GLCs).
* RM2 billion allocated to MARA to sponsor eligible Bumiputera students.
* Government intends to start construction of 1,663-km Pan-Borneo Highway – 936 km in Sarawak and 727 km in Sabah – costing RM27 billion.
* RM660 million earmarked to enhance security in Eastern Sabah Security Zone (Esszone) and Eastern Sabah Security Command (Esscom)
* Lahad Datu airport runway to be upgraded; Squadrom Hawk to be relocated from Butterworth to Labuan, with an allocation of RM50 million.
* RM2.26 billion allocation for Women, Family and Community Development Ministry.
* Government to establish 1Malaysia Youth City, with RM100 million allocated for three pilot projects in Peninsular Malaysia, Sabah and Sarawak.
* Youth Housing Scheme – a smart partnership between the government, Bank Simpanan Nasional, Employees Provident Fund and Cagamas – announced.
* Starting January 2015, 5.4 million primary and secondary school students to receive RM100 each, RM540 million allocated for this purpose.
* RM6 billion allocated to Agriculture and Agro-Based Industry Ministry to strengthen food supply chain.
* RM23.3 billion allocated for health services and facilities for the people, such as building Hospital Dungun in Terengganu and Hospital Seri Iskandar in Perak, establish additional 30 1Malaysia clinics, replace 635 units of haemodialysis machines in government hospitals and clinics.-Bernama
MORE TO COME…
Read more: http://www.theborneopost.com/2014/10/10/2015-budget-highlights/#ixzz3FmsNryU2
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