KUALA LUMPUR – The Budget 2021 is expected to worth around RM330 billion, a 10% increase from the RM297 billion Budget the previous year.
PwC Malaysia Deals Partner, Economics and Policy Patrick Tay said that he believes the Budget 2021 will be aimed to sustain fiscal stimulus to help the country recover back into the growth area.
With the budget projection, together with the monetary stimulus from Bank Negara Malaysia, he expects the country to achieve moderate growth for next year.
Tay said that the government is expected to increase resource allocation to the public healthcare system to support the frontliners by purchasing personal protective equipment to better manage the COVID-19 infection.
He also added that the government should continue with their aid to the small and medium enterprises (SMEs) to support their recovery.
The government should also reintroduce the economic recovery on the Goods and Services Tax (GST) by broadening the tax base and to capturing some revenues.
Sufficient lead-in time is also important to ensure that successful price monitoring system, knowledge building and reduce compliance cost-quarterly submission.
Tay also recommended the government to reduce income tax rates, as well as providing cash vouchers to all the qualifying B40 households and Sales and Service Tax free holidays. Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz is schedule to be tabling the Budget 2021 today.
Related Article: https://www.theasianaffairs.com/malaysia/2020/11/06/budget-2021-speaker-to-allow-all-mps-to-enter-dewan-rakyat-after-request-from-both-sides/